Madrid - The Spanish economy will shrink 3 per cent this year, the Bank of Spain predicted Friday.

Unemployment will climb from about 14 per cent - already the highest in the European Union - to 17 per cent this year and 19.4 per cent in 2010, the central bank said.

The government had earlier forecast that the economy would shrink 1.6 per cent in 2009, its first contraction in 16 years, and start growing again next year.

Vitoria, Spain - A new parliament was constituted in Spain's Basque region Friday, with the first conservative president taking power since the region was granted broad autonomy in 1979.

The choice of Arantz Quiroga as president breaks a long string of presidents from the Basque Nationalist Party (PNV) since 1979. The PNV seeks looser ties, if not independence, from Spain.

Madrid - Real Madrid will be without Marcelo, and possibly Arjen Robben as well, in their Spanish league match away to Malaga on Saturday.

The left-back Marcelo will be out of action for around 12 days, after pulling the abductor muscle in his right leg whilst warming up before Wednesday's Brazil vs Peru World Cup qualifying match.

Real coach Juande Ramos will now have to field either Miguel Torres or Royston Drenthe at left-back, because Gabriel Heinze is also missing through suspension.

Madrid  - Veteran striker Frederic Kanoute told the Spanish media on Thursday afternoon how "delighted" he was to have extended his contract with Sevilla until 2012.

"Both parties wanted to reach an agreement as soon as possible," he said, "and that is why everything has been agreed so quickly. I am delighted to stay here. This demonstrates my commitment to Sevilla."

The new deal, agreed earlier on Thursday, means that Kanoute will be a Sevilla player until the age of 34, although he insisted that "I am not sure about retiring at that age."

Madrid  - Prosecutors at Spain's National Court on Thursday asked judge Fernando Andreu to shelve his investigation into a 2002 Israeli bombing in Gaza Strip for the time being.

Documents handed over by Israel indicated that the events in question were still under investigation by Israel, the prosecutors argued.

Andreu had earlier interpreted the documents differently, concluding that he had jurisdiction over the case, because there was no investigation in Israel.

Seville, Spain  - Seville became the first southern Spanish mainland city to get an underground on Thursday, as the first of a planned four lines started functioning.

The line measuring 18 kilometres links north-western Seville with the southeast.

The construction of the subway, which is estimated to cost 600 million euros (800 million dollars), is running more than two years late of schedule. Media reports attributed the delay to unexpected problems caused by short-term planning.