Spain is still the most popular destination for overseas property seekers, new research has revealed.Property portal Prime Location has said that 30 per cent of all searches in November were for Spain, with France in second place on 29 per cent and the US in third with 21 per cent.The overall tally of

Prime Minister José Luis Rodríguez Zapatero announced last week the government’s decision to increase taxes, in a bid to obtain some much needed cash flow for Spain. 

He justified the controversial tax hikes as “acceptable” as part of efforts to reduce a burgeoning shortfall in the government’s finances. The tax increase appears to have been badly explained though, and the taxes that workers will pay are still not especially high compared to most of the other countries in Europe. The tax of on salaries at present is 16%, which will rise to 19% for salaries up to 6,000 euros and 21% for salaries over this amount. In the In the UK £6035 are tax free, then those up to 

Guarded optimism from the Bank of England balances concern about UK government borrowing. The European Central seems to be looking ahead to taking interest rates higher.

Sterling ratcheted higher, having dipped only briefly below last Monday's €1.0950 starting level. It peaked above €1.11 on Friday and opened in London this morning a cent higher on the week at €1.1050.

Sterling began the week as it had ended the previous one; under the microscope. Investors were more relaxed regarding the default of Dubai World and the exposure of UK banks to the firm. However, they were still sensitive about government debt, which is expected to reach

Spain is among the countries targeted as EU finance ministers adopted new recommendations for 14 countries given firm deadlines to bring bloated public deficits back under tight control.

Budget overspending and consequent national debt, already a severe problem for many countries before the financial crisis, are now turning into a critical dilemma for some nations, notably Greece, as they recover from the slump with deficits three times the required limit.

Austria, Belgium, the Czech Republic, Germany, Italy, the Netherlands, Portugal, Slovakia and

Spain's government on Friday approved a sweeping reform package designed to reduce its recession-hit economy's reliance on the construction sector and usher in a more sustainable growth model.

Spain's government on Friday approved a sweeping reform package designed to reduce its recession-hit economy's reliance on the construction sector and usher in a more sustainable growth model.

"The growth model based on construction was bad for the economy and for the environment," Economy Minister Elena Salgado told a news conference after the "Strategy for Sustainable Economic Growth" was passed.

The reforms include measures to streamline bureaucracy,