Spanish Cabinet Meets to Discuss Budget

Meeting comes amid high borrowing costs and skeptical European markets.

Spain's implied cost of borrowing remained above 7% on Friday as Prime Minister Mariano Rajoy prepared to discuss budget plans with his cabinet.

The government is also due to submit budget plans for 2013 and 2014 to the European Commission later on Friday.

Last month, Madrid announced additional spending cuts and tax rises worth 65bn euros ($79bn; £51bn).