EU deficit fine would be counterproductive

Portuguese Prime Minister Antonio Costa on Tuesday said it would be "unjustified and counterproductive" to punish his country for overstepping the eurozone's deficit limits.

"This entire process is a contradiction," Costa told reporters, saying that Portugal this year would bring its deficit to under three-percent of GDP, thus meeting EU rules, "without having to turn to plan B or exceptional measures" to cut spending.

Eurozone finance ministers agreed to officially begin a sanctions procedure against Spain and Portugal, a procedure that could entail fines of up to 0.2 percent of gross domestic product (GDP)