The European Commission is expected to give Spain an additional year to reach deficit-reduction goals and also to ease its debt reduction targets.

A majority of finance ministers meeting in Brussels on Monday not only appeared ready to give the debt-choked nation an extra year to meet its deficit reduction goals but also to reduce its deficit reduction targets to 6.3 percent of its national output this year, from an earlier target of 5.3 percent of the country's GDP, Reuters said, citing persons familiar with the matter.

In return for the less stringent demands, Spanish Prime Minister Mariano Rajoy is expected to agree to another round of tax increases, the Financial Times reported.