Spain PM insists on sticking to austerity measures

MADRID

Spain's prime minister says his government is determined to stick to harsh austerity measures for as long as is necessary.

Mariano Rajoy acknowledged Spain is experiencing turbulence, but said Saturday that the country "will not sink."

Spain, where unemployment stands at 24.4 percent, has imposed spending cuts and tax hikes to get out of a financial crisis that many fear will drag down the rest of the struggling eurozone.

Rajoy says his government has "the will to persevere in this line for as long as is necessary."

Spain's banking sector is laden with soured investments on real estate and the government needs (EURO)19 billion ($23.4 billion) to rescue just one bank, Bankia SA.