Spain slashes spending in bid to head off bailout
Spain has crept closer to a bailout as the government leaked plans to cut pension spending.
Spain has crept closer to a bailout as the government leaked plans to cut pension spending.
Robin Emmott and John O'Donnell
Europe will grant Spain an extra year to reach its deficit targets after it outlines further budget savings to finance ministers meeting in Brussels.
A double-notch downgrade of Spain's credit rating has piled pressure on Europe's leaders to make progress on solving the region's debt crisis.