Britain will not negotiate with Spain on the question of sovereignty over Gibraltar without the approval of the colony's residents, Premier David Cameron said this week during a visit by Spanish Prime Minister Mariano Rajoy.
Rating agency Moody's announced on Tuesday it had downgraded six European nations including Italy, Spain and Portugal, citing growing risks from Europe's debt crisis, and warned it may cut the triple-A ratings of France, Britain and Austria.
Spain's government will unveil reforms to rigid labour laws on Friday that it hopes will be radical enough to get to grips with sky-high unemployment while not severing links altogether with unions ahead of key regional elections.
Mariano Rajoy, Spain’s Prime Minister, is expected to meet with his British counterpart David Cameron later this month. According to Spanish press reports the meeting is likely to take place in London on February 21.
Spain’s economy contracted in the fourth quarter and will shrink 1.5% this year, the Bank of Spain estimated, undermining government efforts to cut the budget deficit amid the second recession in two years.
Spain ended 2011 with record high unemployment, according to data released Tuesday as the new conservative government of Prime Minister Mariano Rajoy considers additional austerity measures to reduce the budget deficit.
Spain's new government revealed on Friday that the public deficit for 2011 would come in at 8% of GDP, well above a target of 6%, and announced income and property tax hikes and a civil servant wage freeze in response.
Ana Botella, the wife of former Spanish Prime Minister Jose Maria Aznar, was sworn-in Tuesday as Madrid’s first woman mayor. She succeeds Alberto Ruiz-Gallardon, mayor of the capital since 2003, who resigned to serve as Justice Minister in the new Conservative government of Prime Minister Mariano Rajoy.
New Spanish Prime Minister Mariano Rajoy named on Wednesday a cabinet of mostly close advisers charged with reviving the sluggish economy while slashing spending to reassure investors the Euro zone's No. 4 economy can stay solvent.
Spanish lawmakers voted Tuesday to make conservative leader Mariano Rajoy the new prime minister, approving his program of sweeping budget cuts and tough economic reforms.