Spain faces another austerity budget in 2011 as it seeks to reduce its public deficit, Prime Minister Jose Luis Rodriguez Zapatero said on Friday.

Spain jobless rate up to 13-year high

Spain’s unemployment rate rose to 20.09 percent for the second quarter of 2010, up from 20.05 percent from the previous quarter, Spain’s National Statistics Institute said Friday.

Spain has reopened an investigation into the death of a journalist killed in Iraq in 2003 and reissued arrest warrants for three US soldiers in relation to the incident.

Spain will probably lose its Aaa credit rating after the country was put under review for possible downgrade in June, and the U.S. needs a clear plan to tackle its deficit, Moodys Investors Service said.