EU seeks approval to fine Iberian nations for budget-deficit breaches

The EU is in a political bind as it looks into the unprecedented step of slapping sanctions against Spain and Portugal for breaching budget-deficit limits.

The European Commission is seeking the go-ahead from finance ministers to propose fines and a suspension of some EU regional-development funding after concluding that Spain and Portugal took inadequate steps to narrow deficits.

Should the finance ministers support the request as soon as next week, the commission would have 20 days to propose a set of penalties.