The El Mundo newspaper reported, citing sources in the Spanish government, the EU fine is 'inevitable' if Madrid misses budget-deficit targets by October 15. The fine would be imposed through $5.6 billion direct penalty and additional $1.2 billion through the EU structural funds freeze.
Spain's 5.1-percent of GDP deficit last year fell short of the targeted 4.2 percent. However, Spain's economy is currently growing at a rate of over 3 percent per year after returning to growth in 2014.
Under the EU rules, governments have to bring their deficits to below 3 percent of GDP, while debts should not exceed 60 percent of GDP.