Prime minister faces protests in the capital and dissent from regional leaders.

Nation faces pressure from investors to seek a rescue.

Nation faces pressure from investors to seek a rescue.

Rating agency says the eurozone's peripheral nations are at best halfway to correcting their economic imbalances.

Rating agency says the eurozone's peripheral nations are at best halfway to correcting their economic imbalances.

Concessions provide more time to reduce deficit in exchange for deeper cuts.

Concessions provide more time to reduce deficit in exchange for deeper cuts.

Prime Minister Rajoy has lost credibility since his election seven months ago.