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Unemployment in Spain reaches 26%

4 February 2013 Last updated at 08:22 GMT

Riot police in Spain clashed with protesters over the weekend, angry at claims that Prime Minister Mariano Rajoy and his party have been receiving secret payments from a fund set up by big businesses.

With calls for the Mr Rajoy to resign, there are worries this latest scandal could destabilise markets which have recovered significantly in recent months.

Meanwhile, monthly jobs data out later is unlikely to calm nervous markets. Unemployment in Spain now stands at a staggering 26% with no signs of falling.

Tom Burridge reports.