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The exercise is more about partnership than penalties, says Brussels (Photo: EUobserver)

Italy and Spain close to breaking euro rules

Single currency states felt the long arm of the European Commission stretch into national affairs on Friday, as the Brussels executive published in-depth reviews of their draft 2014 budgets.

Just two euro states - Estonia and Germany - were give the all clear, while five were warned they are close to breaking the single currency's rules.

EU economic affairs commissioner Olli Rehn described the first ever use of new economic governance rules, which require euro countries to submit ...

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