Spain to test beefed-up EU budget rules

Spain, the eurozone's fourth largest economy, is becoming the first major test of the EU's fresh new rules on budget discipline as it seeks flexibility from Brussels on its deficit targets.

Madrid on Monday (27 February) announced that last year's budget deficit was 8.51 percent of GDP, up from an initial estimate of 8.2 percent and well above the 6 percent target agreed with the European Commission last year.

Spain, which is supposed to bring its deficit down to 4.4 percent this ...