25 July 2012
Last updated at 12:54 ET
Spain, along with Greece, is one of the main countries at the centre of the financial crisis in the eurozone. To find out more about the problems it faces, see below.
Spain in numbers
Spain is the eurozone's 4th largest economy
One in four people is unemployed
House prices have dropped by 25% since 2008
The banking sector is highly indebted. Bankia, the country's
fourth largest bank, recently asked for a €19bn bailout
By 2010, one in four Spaniards were at risk of poverty
or social exclusion
Spain has the highest unemployment rate
in the EU. It is even higher than Greece. 51.5%
The majority of young
people are unemployed
Unemployment across Europe, 2011
In 2006, Spanish unemployment, at 8.5%, had been close to the EU average.
Five years later, in 2011, it was twice as high at 21.7%.
The collapsing property market and recession have
forced some of Spain's banks to seek government help. Banks have 155.84bn euros of loans at risk of not being
repaid. That is 9% of all loans. Small, weak banks have been saved through mergers:
the number of banks has shrunk from 45 to 11. The government has injected 60bn euros into banks. They
will also get up to 100bn euros in loans from the eurozone.
Regional governments, hit by a mixture of the property bust, recession and overspending, are also struggling. Some of them are having to ask the central government for help.