Spain's new Prime Minister, Mariano Rajoy

POPULAR PARTY leader Mariano Rajoy was elected by parliament as Spain’s new prime minister.

This coincided with Spain’s borrowing costs plummeting suggesting market confidence in the country’s ability to handle its debt.

Rajoy – pronounced ra-hoy – has been criticised by the opposition for not outlining how he plans reduce unemployment, shrink the public sector and reduce Spain’s budget deficit.