Sweeping overhaul of banking sector backed by the major parties despite concern it will increase hardship for homeowners.
Plunging approval rating is holding him back as unemployment soars to 27 percent.
Premiers want the eurozone to focus on economic growth in order to reduce youth unemployment and stabilize the banking system.
Despite their alleged links to the terror network, an official described the two suspects as essentially acting as "lone wolves."
Many countries hit hardest by financial crisis saw deficits rise.
Parliament hopes new mortgage rules, assistance will calm outcry over housing repossessions.
Desperate foreclosure reform advocates have taken to camping outside residences of senior members of the ruling People's Party.
Foreign Minister said the summoning of Princess Cristina affected the entire country's image.
Basque separatist group was told to dissolve in advance of talks to end its four-decade armed struggle, but remains armed and anxious.
Pols still want higher taxes and budget cuts, but are slowing the pace in hopes of avoiding any further slowdown in economic growth.