Spain says it is falling deeper into recession.

Madrid said Tuesday that the country's economy fell four-tenths of one percent in the April-to-June period as the government's austerity budget measures took hold. The Spanish economy contracted three-tenths of a percent in the first quarter of the year.

With nearly 25 percent of Spaniards out of work and the third biggest budget deficit in the euro currency union, Spain has struggled to boost its economy. Its European neighbors have already agreed to a bailout for the Spanish banking system. Some analysts say the government eventually also will be forced to seek a rescue package, much like Greece, Ireland and Portugal already have.

Catalonia, Spain's northeastern hub of business and industry, said Tuesday it would seek more than $6 billion in aid from the central government to meet its debt payments.