After adopting the euro, the Spanish economy initially benefited from sharply lower interest rates, spurring a property bubble. However, with the onset of the global financial crisis, property prices collapsed, causing widespread layoffs, and pushing unemployment to more than 26 per cent by the end of 2012. Spain received a bank bailout from the European Central Bank in 2012. 

Anti-austerity protesters march in Madrid. Photo: AFP

Spain prepares to pass reforms, budget cuts

Spain will announce economic reforms and a tight budget on Thursday, in an attempt to avoid Brussels imposing conditions on a request for an international bailout.