Spain's De Guindos says new deficit path is achievable

MADRID (Reuters) - Spain's new path to cut its public deficit below 3 percent of economic output by 2018 is achievable, Economy Minister Luis de Guindos said on Wednesday, after Brussels proposed cancelling a fine on Madrid for missing its deficit targets last year. The European Commission proposed on Wednesday to cancel fines for Spain and Portugal over their failure to cut their deficits to within EU limits and gave Madrid two more years to make the required reductions. The Commission proposed suspending part of both Spain and Portugal's structural funds for 2017, but De Guindos said he believed this was unlikely. The minister added Spanish banks would do well in the upcoming European banking stress tests, a health check on 51 lenders across the EU, due on Friday. (Reporting by Sarah White, writing by Amanda Cooper; Editing by Julien Toyer)