EU states told to apply bank rules or face legal action

(BRUSSELS) - The European Commission on Thursday threatened several EU states, including a few struggling with debt crises, with legal action unless they comply with new banking rules.

The European Union's executive arm gave Greece, Italy, Poland, Portugal, Slovenia and Spain two months to present measures showing they will implement rules aimed at ensuring the soundness of banks.

Belgium, Luxembourg, Slovakia and Sweden only partially implemented the rules, which were supposed to be implemented by January 1, the commission said.

The EU directive seeks to prevent excessive banking bonuses and imposes higher capital requirements for banks.

Greece became the first eurozone country to receive a bailout last year, while Portugal was granted its own aid package this week as Europe struggles to contain a relentless debt crisis.

Spain, whose banks have been heavily exposed to bad debt since a housing bubble burst in 2008, has taken drastic austerity measures to avoid following in its neighbour's shaky footsteps.