Spain's Prime Minister appealed on Tuesday for European leaders to push toward greater fiscal unity a step that would allow its troubled banks to get direct financial help while a top government official warned that the country's high borrowing costs meant it faced increasing trouble accessing credit markets.

Mariano Rajoy told a Senate session that Europe “needs to support those that are in difficulty.”

“It needs fiscal integration with a fiscal authority and banking integration, a banking union with eurobonds, a banking supervisor and a European guaranteed deposit fund.”