spain

The euro is rising against the dollar as borrowing rates fall in Italy and Spain. That's a sign that investor confidence in those two countries is improving.

Spain's Parliament approved the new conservative government's first austerity measures Wednesday, which aim to rein in the country's swollen deficit with euro8.9 billion ($11.5 billion) in spending cuts.

Both countries saw their borrowing costs spike during the day, even as pressure on Italy eased slightly.

The Spanish government on Friday cut a key tax rate in an attempt to boost the country's ailing construction sector and announced plans to raise euro5 billion ($7.2 billion) as it tries to get a grip on its borrowings.

The bank says it will “actively implement” its bond-buying program, a move that is expected to help stem the crisis in Spain and Italy.

Moody's downgraded the debt of 30 Spanish banks Thursday but left untouched the ratings of the country's three largest banks, highlighting the weaknesses in Spain's financial system a day after the government in neighboring Portugal fell.

Demand was strong for nearly $4 billion of five-year Spanish bonds, easing immediate concerns about the ability of the euro zone’s weakest members to raise funds.

June 9 -- Eric Maskin, Nobel laureate and professor of social science at the Institute for Advanced Study, talks about Spain's austerity measures and their effect on the country's economic growth.

Fitch cut Spain’s credit rating, saying that the country’s debt will probably weigh on the country’s growth.

Stocks are down sharply after Spain suffered another downgrade to its credit rating. The move by Fitch Ratings is raising concerns about the health of Europe's economy.