Spain unveils austerity budget

Spain is cutting 27bn euros ($36bn; £22.5bn) from its budget this year as part of one of the toughest austerity drives in its history.

Changes will include freezing public sector workers' salaries and reducing departmental budgets by 16.9%. The government says it will raise 12.3bn euros this year, aided by an increase in tax for large companies.

Deputy Prime Minister Soraya Saenz de Santamaria said the nation was in an "extreme situation".

Read more: BBC News

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London 2012: Strike threat by Unite to Olympic Games

Industrial action against government cuts could be timed to disrupt the London 2102 Olympics, the leader of Britain's largest union has said.

Len McCluskey, of the Unite union, also called for civil disobedience during the Games to defend public services.

In an interview with the Guardian, Mr McCluskey said his union had discussed the possibility of strike action but there were currently no plans in place.

Read more: BBC News UK

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