LONDON, England - March 5, 2012 - Spain risks being fined under new EU rules for a "grave" breach of budget limits, the European Commission warned on Monday, despite EU President Jose Manuel Barroso stating that he was confident the country would fulfill its commitments.

Addressing reporters during a visit to Vienna, Barroso said the Commission had not yet seen Spain's 2012 budget and needed more information about the "slippage" Madrid had in 2011, so he could not comment in detail.

But he added, "I have no doubts that the government will honor its commitments with respect to the stability and growth pact."

Spain's new 2012 budget target is easier than originally agreed under the eurozone's austerity drive, putting a question mark over the credibility of the European Union's new fiscal pact.

Prime Minister Mariano Rajoy insisted he was acting within EU guidelines because the plan was still to hit the European Union public deficit goal of 3% of gross domestic product (GDP) in 2013.

Spain's new 2012 target of 5.8% of GDP was more realistic than the original 4.4% goal, but was still demanding, he said last week.

The gambit will force the EU to decide whether to punish Spain for missing the initial target.

Earlier, Monetary Affairs Commissioner Olli Rehn's spokesman said that the 2011 slippage amounted to a "serious, grave" budgetary deviation.

Spokesman Amadeu Altafaj said Madrid warned Brussels on December 30 of a slide of two percentage points compared with output on its deficit target for 2011, then another half a percentage point two days ago.

"We need to shed full light on what went on in Spain in 2011," he added.

Altafaj said Commissioner Rehn had asked Spain for "clarity" during talks among eurozone finance ministers on Thursday, and is still waiting for a response.