Lawmakers back plans to impose EU bailouts

European lawmakers have backed new powers for the EU executive to exercise control over national budgets and urge struggling countries to take a bailout.

The proposals, voted through just days after Spain became the fourth country in the region to request international aid, is likely to be discussed by eurozone finance ministers by July at the latest.

Spanish prime minister Mariano Rajoy said his reforms had spared Spain a full rescue for its public debt but some analysts say the bank aid may only be a prelude to an eventual bailout of the state.