Spain continues to slide deeper into recession. Economic output fell by 0.7 percent on the same period in 2011. It's the steepest decline in three years. Spending cuts and tax hikes are putting the brakes on growth.
Robust growth in some eurozone countries supported the 19-member currency bloc's recovery in the first quarter, driving down rampant unemployment. But a further drop in inflation shows that the upswing remains fragile.
Spain is likely to call fresh elections as a deadline to form a government looks set to be breached. Despite an eleventh-hour coalition proposal, the clever money is now on new polls being called for June 26.
Nearly ten weeks after elections in Spain, the country's Socialists have announced a deal with the centrist Ciudadanos party. The political stalemate in the country is far from over, however.
After weeks of political deadlock, acting Prime Minister Mariano Rajoy says Spain will "most likely" schedule new elections for June. Socialist leader Pedro Sanchez called Rajoy's comments "pitiful."
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