Spain agrees to austerity measures

The Spanish government has approved a package of new austerity measures and economic stimulus in a bid to ease investor fears about its debt.

The moves include selling off nearly a third of its national lottery, partially privatising airports, cutting a jobless benefit and trimming taxes for small companies.

The measures were agreed at a weekly cabinet meeting.

Spain, which has soaring unemployment and a swollen deficit, is battling to convince markets it can handle its debt and won’t need a bail-out from the European Union and International Monetary Fund like Ireland and Greece.