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 denounced economic structures that put profits ahead of people yesterday at the start of a trip to recession-hit Spain where the costs of the pontiff’s visit have sparked violent protests.

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.

FINANCIAL market pressure on Italy intensified last night, sucking Europe’s second biggest debtor nation deeper into the euro area danger zone and prompting emergency consultations in Rome, Madrid and other European capitals.

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 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 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.

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

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 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.

POPE Benedict XVI strongly defended traditional families and the rights of the unborn, directly attacking Spanish laws that allow gay marriage, fast-track divorce and easier abortions as he dedicated Barcelona’s iconic basilica, the Sagrada Familia.

Pope Benedict XVI criticised an “aggressive” anti-Church sentiment that he said is flourishing in Spain as he arrived on a two-day visit today to rekindle faith in the country.

THE outlawed political wing of Basque separatist group ETA said yesterday it would reject violence in its drive to be legalised, but the government said it must go further to be able to participate in elections.

Spain’s beleaguered prime minister suffered an embarrassing election setback as a poll showed his party trailing ever further behind the opposition conservatives at the national level.

Hundreds of Spanish civil servants chanted protests in central Madrid today as they took part in a one-day strike over wage cuts aimed at reducing the country’s huge deficit.

Fitch Ratings has cut Spain’s credit rating, saying its government’s efforts to reduce debt would weigh down economic growth.

The Spanish government defiantly ruled out calling early elections today despite having almost no parliamentary support for spending cuts designed to combat the country’s debt crisis.

Taoiseach Brian Cowen will today be among 60 heads of State and Government discussing the global financial crisis.

Madrid: Aides to French President Nicolas Sarkozy, German Chancellor Angela Merkel and Spanish Prime Minister Jose Luis Rodriguez Zapatero all denied a report that Sarkozy had threatened to pull out of the euro.

Militant Basque separatist group ETA was today blamed for the murder of a French policeman outside Paris.

An unidentified hacker has hijacked Spain's official website for its presidency of the European Union, inserting a large smiling picture of comic character Mr Bean.

SPAIN’S taking over the six-month presidency of the EU will be formally celebrated in Madrid’s Teatro Real, the royal opera house, later this week.

Brushing off questions about any possible resignation, Italian Premier Silvio Berlusconi insisted yesterday that he’s been Italy’s best premier ever and said he was considering suing the woman at the centre of his sex scandal.

Italy’s premier Silvio Berlusconi today attempted to dismiss the continuing sex scandal surrounding him by insisting he never paid for sex because that would remove the “joy”.

Strong winds fanned forest fires on the Canary Island of La Palma, and firefighters were forced to retreat as flames raged out of control near two towns.

Spain's security forces were on maximum alert today for the 50th anniversary of the armed Basque group ETA, blamed for bombings that killed two police officers and injured scores of people this week.

The Spanish government today approved a plan to ease its abortion law and allow the procedure without restrictions up to 14 weeks of pregnancy, pressing ahead with a sweeping social reform agenda that has irked conservatives and the Catholic church.

FRENCH and Spanish police arrested the reputed leader of ETA’s commando units yesterday — dealing a massive blow to the armed Basque separatist group, officials said.

Spain today promised to help families struggling to pay mortgages during the financial crisis.

At least 15 people were injured by a car bomb at a university in the Spanish city of Pamplona today.

Prime Minister Jose Luis Rodriguez Zapatero tonight announced that Spain is setting up a €30bn fund to help the financial sector.

Spain’s government defended a plan to fight soaring unemployment by shutting the door on foreign workers, fending off criticism that the idea is mean-spirited and futile.

YESTERDAY’S announcement by Finance Minister Brian Lenihan that he is to introduce the 2009 budget in October, two months ahead of schedule, is an appropriate first response to the challenges presented by our rapidly deteriorating economy.

A powerful car bomb exploded outside a police station in northern Spain today, killing one officer and wounding four others in an attack blamed on the militant Basque separatist group ETA, police said.

Seven police were injured when a massive bomb exploded in the northern Spanish city of Bilbao today

Spain’s King Juan Carlos laid a wreath at a towering glass monument to the victims of the Madrid train bombings today on the fourth anniversary of the terror attacks.

Spain’s opposition conservatives tonight conceded defeat in the general election to the ruling Socialists.

Spanish voters went to the polls faced with a choice between PM José Luis Rodriguez Zapatero and Mariano Rajoy of the right, neither of whom laid out a coherent vision, write Elaine Sciolino and Victoria Burnett.

Spaniards are voting today in a general election overshadowed by a killing blamed on Basque separatists that evoked memories of the 2004 election in which Islamic militants killed 191 people in bombings aimed at bringing down a conservative government.

Both of Spain’s major political parties called off all campaigning in the run up to Sunday’s general election after a politician was shot dead by Basque terrorists today.

The Spanish government today called a general election for March 9, formally launching what is shaping up as a close race between the ruling Socialists and opposition conservatives.