Economy, Spain | featured news

Spain, the latest combat zone in Europe's long-running debt wars, urged the euro zone to set up a new fiscal authority to manage the bloc's finances and send a clear signal to markets that the single currency project is irreversible.

German, US and UK yields fell to all-time lows after Spanish Economy Minister Luis de Guindos said the future of the euro is at stake, driving demand for the safest government securities.

Spanish 10-year borrowing costs neared the 7 percent danger level and Bankia shares hit record lows on Monday after the government, struggling to sort out its finances, proposed putting sovereign debt into the struggling lender.

Spain's latest credit rating downgrade has thrown into sharp relief the need to revive a banking sector that could need another 100 billion euros to cover bad debts in order to avoid exposing another weak flank in the euro zone crisis.

The king of Spain offered an unprecedented apology Wednesday for going on an elephant-hunting safari in Africa while his subjects struggle with recession and high unemployment at home.

Italy and Spain pass new measures as they battle to control their debts while Greece steps up its austerity plans.

Fueling the demonstrators’ anger is the perceived failure by politicians to alleviate the hardships imposed on a struggling population by a jobless rate of 21 percent.

Fitch cut Spain’s credit rating, saying that the country’s debt will probably weigh on the country’s growth.

The euro region finally sees some modest growth, as Spain and Ireland straggle behind.