Spain may require a bail-out from Europe and the IMF

The Spanish prime minister has announced that his government will adopt new economic measures in order to reassure markets that the country's deficit is under control.

Speaking at a summit on the eurozone debt crisis Jose Rodriguez Zapatero said he would enact legislation that would limit government spending.

He also pledged to crack down on tax evasion.

Some analysts think Spain may require a bail-out from Europe and the IMF.

Spain has already cut government spending and introduced pension and labour market reforms.

However the economy is struggling with an unemployment rate of 20%.

"Spain will adopt new measures to reinforce its response to the economic crisis and strengthen the foundation of our economy," Mr Zapatero told reporters.

The move comes in the wake of fresh concerns over Portugal and whether it will be forced to request a bail-out.