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Spanish PM Rajoy's "accounting trick" may not "cut it with the EU" (Photo: María Dolores de Cospedal)

Spain stuck between EU sanctions and political deadlock

Spain’s caretaker conservative government has promised action to avoid a fine for overshooting deficit targets, but the failure of acting prime minister Mariano Rajoy to win support to form a new cabinet may undermine its case.

Acting economy minister Luis de Guindos argued that his country should not be fined for doing too little to bring its deficit to below 3 percent of GDP and has expressed confidence Spain will eventually receive just a symbolic punishment.

It risks a fine of...

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