The financial crisis in Europe was dealt another blow Monday, as Spain confirmed yet another recession.

The country's economy shrank 0.3 percent in the first quarter, forcing Spain into its second recession in the last three years.

Other eurozone countries of the 17-member monetary system in the red include Belgium, the Netherlands, Italy, Slovenia, the U.K. Denmark and the Czech Republic.

The downturn is expected to worsen in months ahead, raising the possibility that Spain might need a bailout package like Greece, Ireland and Portugal.

But Spain's Economic Minister Mariano Rajoy told Bloomberg news that his country won't need a bailout.

Standard & Poor's downgraded Spain's debt rating from A to BBB+ and downgraded long and short-term ratings on 11 of its top banks.

Now, the country must reduce its deficit from 8.5 percent to 3 percent in 2013.

Talks of spending cuts have sent tens of thousands to protest the conservative government.