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Merkel to visit Spain, Austria next week

The German government says Chancellor Angela Merkel will visit Spain and Austria next week in the latest round of eurozone crisis diplomacy.

Merkel will meet Spanish Prime Minister Mariano Rajoy in Madrid next Thursday before both leaders attend a Spanish-German business conference.

Spain has seen its borrowing costs soar on investor concern about its ability to manage its finances without aid. Spain recently admitted it was debating applying for some sort of bailout; it has already been granted a €100 billion ($125 billion) loan to help its troubled banks.

Next Friday, Merkel will visit Austria — one of the eurozone's more financially solid nations — for meetings with Chancellor Werner Faymann and his deputy, Foreign Minister Michael Spindelegger.

Merkel met the French, Greek and Italian leaders over the past week.

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