Spain's borrowing costs soared Wednesday to another record amid worries over the government's finances and financial problems for banks in this troubled euro zone country.

The interest rate gap, or spread, between 10-year Spanish bonds compared to their benchmark German equivalent rose by more than 0.10 percentage point to 2.23 percentage points. A growing gap indicates investors think Spain's debt is getting riskier.

The increase came a day after the European Union warned Spain it would have to enact more austerity measures to meet its deficit-reduction goals: cutting it from 11.2 percent of gross domestic product last year to 3 percent in 2013. For months Spain has been the focus of worries that its public finances might degenerate into a Greek-style crisis. Greece ultimately needed a bailout after being frozen out of credit markets by prohibitive high interest rates.

The Spanish government prepared Wednesday to approve long-awaited labor market reforms designed to encourage businesses to hire and chip away at a 20 percent jobless rate in a country that has only just crawled out of nearly two years of recession. Unions responded by calling a general strike, but not until late September.