Spain Announces New Measures In Bid To Calm Markets

Prime Minister Jose Luis Rodriguez Zapatero also told parliament that the government also will stop paying a 420 euro ($549) monthly subsidy to people whose unemployment benefits have expired.

Spain's prime minister has announced that his government will sell off a 30-percent stake in the state-owned lottery, and also partially privatize the airports in Madrid and Barcelona to ease market worries about the country's economic stability.

Jose Luis Rodriguez Zapatero told parliament that the government also will stop paying a 420 euro ($549) monthly subsidy to people whose unemployment benefits have expired.

The announcements are aimed to reassure Spain's investors that Spain may follow Greece and Ireland in needing financial help to cover its debts.

Spain has already announced spending cuts worth tens of billions of euros.

A bailout for Spain -- the fourth biggest economy among the 16 European Union members using the common currency -- would test Europe's finances.

compiled from agency reports