Spain is today holding a national election – and it is expected to become the third eurozone country in as many weeks to throw out its governing party in an attempt to dig itself out of an economic crisis.

Basque separatist group ETA, which renounced violence last month after spending more than 40 years trying to shoot and bomb its way into achieving an independent state, now says surrendering weapons is on its agenda, a newspaper reported today.

Spain has ruled out talks with the Basque separatist group Eta even as it welcomed an end to four decades of bombings and shootings following the group’s announcement it was laying down arms.

Spain is claiming an end to four decades of bombings and shootings after the Basque separatist group ETA announced it would lay down its arms and try to negotiate its demand for a separate nation.

SPAIN’S prime minister dissolved parliament yesterday, setting the stage for a November 20 general election.

Spain today began the run up to a November 20 general election that is likely to focus on an economy saddled with 21% unemployment, anaemic growth and gloomy future prospects.

POPE Benedict XVI warned of an “eclipse of God” as he spoke to nuns outside a 16th century Spanish monastery during protest-hit Catholic youth celebrations.

Italy tonight pledged to work for a constitutional amendment requiring the government to balance its budget in a bid to ressure domestic and foreign investors that its finances are sound.

Italy’s borrowing costs have risen above Spain’s for the first time in more than a year, pushing European leaders to interrupt their holidays and look for a response to deepening fears about the health of the eurozone’s third-largest economy.

German Chancellor Angela Merkel will hold a telephone conference with French President Nicolas Sarkozy today as stock markets around the world continue to slide on a combination of worries over the US economy and Europe’s debt crisis.

Italian premier Silvio Berlusconi vowed to complete his five-year term and focus his government policies on growth to calm the market turmoil that threatens to plunge one of Europe's biggest economies into the debt crisis.

Italian Premier Silvio Berlusconi vowed today to complete his five-year term and focus his government policies on growth to calm the market turmoil that threatens to plunge one of Europe’s biggest economies into the debt crisis.

Italy’s borrowing rates hit a new euro-era high today as a global market sell-off reignited fears that the debt crisis will engulf the eurozone’s third-largest economy.

Italy’s 10-year borrowing costs have hit a new euro-era high amid ongoing fears that Europe’s debt crisis could spread to the country.

SPANISH Prime Minister Jose Luis Rodriguez Zapatero has announced early general elections in November, four months early, in a bid to give his Socialist Party a better chance at keeping power.

Spanish Prime Minister Jose Luis Rodriguez Zapatero has announced early general elections in November, four months earlier than anticipated in a bid to give his Socialist Party a better chance at maintaining power.

THE debt crisis shook Europe’s core yesterday as market fears grew over the stability of Spain and Italy, forcing a rethink of the currency union’s strategy to restore trust in its future.

European officials today tried to prevent the debt crisis from spilling over into bigger economies such as Italy and Spain, as disagreements delayed a second bailout for Greece.

HUNDREDS of thousands of teachers and civil servants will strike over pension reform today in the most serious challenge yet to the British coalition government’s austerity drive.

Germany is considering pushing for EU compensation for Spanish farmers after it erroneously blamed its vegetable produce for starting the E.coli outbreak that has killed up to 18 people, Spain said.

The World Health Organisation (WHO) has said the E.coli bacteria responsible for a deadly outbreak that has left 18 dead and sickened hundreds in Europe is a new strain that has never been seen before.

The European Commission has demanded an explanation from Russia after it banned imports of fresh vegetables from EU countries over a deadly bacteria scare.

Barclays is considering a move for one of Spain’s ailing regional banks in a multi-billion pound bailout, it was reported today.

THE ruling Socialist Party braced itself for stinging losses in regional and municipal elections amid unprecedented street protests that have caught the imagination of the nation.

SPAIN’s crown prince and princess attended a funeral Mass for the nine people killed in the country’s deadliest earthquakes in more than 50 years.

Spain’s prime minister is touring the quake-ravaged city of Lorca for a first-hand look at building damage that caused an estimated 3,000 people to spend another night sleeping in tents in makeshift camps.

THOUSANDS of Spaniards have fled the town of Lorca after two earthquakes killed nine people and caused extensive damage.

Thousands of Spaniards have fled the town of Lorca after two earthquakes killed nine people and caused extensive damage.

Thousands of people have spent the night outdoors in the south-eastern Spanish city of Lorca in fear of further tremors after Spain’s most destructive earthquakes in 50 years killed eight people and injured dozens more.

A minute’s silence and round of applause for Seve Ballesteros at a golf tournament is one thing, but when it comes before a tennis semi-final between Roger Federer and Rafael Nadal then you know the world of sport has lost a truly giant figure.

CHINA’S ambassador to the European Union said Beijing could increase its holding of eurozone government debt and said he hoped troubled eurozone states like Ireland would ensure the investment was secure.

Spanish Prime Minister Jose Luis Rodriguez Zapatero has announced he will not seek a third term in office at general elections in 2012.

THERE were conflicting reports of fighting in Libya last night as countries prepared to enforce a no-fly zone over the country and the west, allied with the Arab League, the African Union and the UN, prepare to meet in Paris today.

THE outlawed political wing of armed Basque separatists ETA announced yesterday its rebirth as a new party that rejects violence and intends to contest elections.

A statement in the pro-independence newspaper Gara did not mention ETA giving up its weapons, a key Spanish government demand.

Spain’s parliament passed an austerity budget for 2011 by a razor-thin margin, saving embattled prime minister Jose Luis Rodriguez Zapatero his job.

Spain’s Parliament passed an austerity budget for 2011 by a razor-thin margin today, saving embattled prime minister Jose Luis Rodriguez Zapatero his job.

Spain may extend its emergency law brought in to end the 24-hour air traffic controllers’ strike, despite flights returning to normal after a weekend of chaos.

Spain placed striking air traffic controllers under military authority today and threatened them with jail terms in an unprecedented emergency order to get planes back in the skies and clear chaotic airports clogged with irate travellers.

Spanish airspace reopened this afternoon after a strike by air traffic controllers that left thousands of British holidaymakers stranded, authorities in the country said.

Spain’s military have taken control of the country's airspace after air traffic controllers staged a massive sickness walkout that stranded at least 330,000 travellers on the eve of a long holiday weekend, forcing the government to shut down Madrid’s big international hub and seven other airports.

HEAVY snow and sub-zero temperatures swept across Europe, killing at least eight homeless people in Poland, closing major airports in Britain and Switzerland and causing hundreds of highway accidents.

Heavy snow and sub-zero temperatures have swept across Europe killing at least eight homeless people, closing major airports and causing hundreds of road accidents.

Spain is to sell a 30% stake in its national lottery and partially privatise airports in Madrid and Barcelona to ease market worries about public finances.