WSJ:

Spanish Prime Minister Mariano Rajoy Wednesday announced fresh austerity measures that should help Madrid cut its budget deficit by €65 billion ($79.62 billion) through to 2015, and said the euro-zone's fourth-largest economy may not grow at all next year.

The measures were swiftly welcomed by the European Commission, the European Union's executive arm, but market participants said they could slow the country's recovery from recession and may not save the country from needing a full-fledged financial bailout on top of recent European agreement to support its struggling banks with up to €100 billion.