Rajoy closer to seeking bailout

Violent protests in Madrid and growing talk of secession in wealthy Catalonia are piling pressure on Spanish Prime Minister Mariano Rajoy as he moves closer to asking Europe for rescue money.

Rajoy has been resisting calls from influential domestic bankers and the leaders of France and Italy to move quickly to request assistance, but a series of events this week will drive him closer.

With protesters stepping up anti-austerity demonstrations, Rajoy today presents more painful economic reforms and a tough 2013 budget, aiming to persuade eurozone partners and investors that Spain is doing its deficit-cutting homework despite a recession and 25% unemployment.