Spanish Prime Minister Mariano Rajoy and his visiting Portuguese counterpart Pedro Passos Coelho on Monday called for more progress on banking unity of the European Union (EU).

During their meeting at Rajoy's official residence at the Palacio de la Moncloa, the two leaders believed that the EU has a major role to play in their efforts to climb out from the crisis.

Rajoy, at the following press conference, called for the EU to fulfill the calendar which has been put into place for moves for banking union, as well as taking measures to deal with the problem of youth unemployment, which currently stands at over 50 percent in Spain.

He said the question of youth unemployment was a problem, which was "urgent, national and European," while commenting "Europe was still the mark for prosperity and wellbeing."

Rajoy was especially at pains to highlight the need for banking union, saying that "it was a test of the credibility" of the EU.

He also stressed the need for speed in this issue, adding, "there is no time to be lost in the coming months," while giving his support to the euro, saying it was "not going to break up" in the future.

Spain's economy is predicted to contract by around 1.5 percent this year and Rajoy explained that "sometimes results take their time in arriving, but in Portugal and Spain we are fulfilling our part of the bargain."

Passos Coelho meanwhile added that countries such as his and Spain would not be able to overcome the crisis on their own, but that they needed the help of the EU partners.

"We need a more intense, response from Europe: the work of the Council and the willing shown through further banking and economic union are essential," said the Portuguese leader, who also announced that his country would shed a further 30,000 civil servants, cut pensions and delay the age of retirement by a further year. Endi

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