BBC News – What’s the matter with Spain?
Whoever wins Spain’s general election on Sunday – and it looks likely to be the opposition conservatives – will face a potentially unsolvable economic dilemma.
They may also face a major financial crisis.
The government’s cost of borrowing money on the financial markets for 10 years – a popular barometer of lender fear – has risen to 6.3%.
That’s close to the level where other eurozone governments turned to their neighbours for a bailout.
In comparison, Germany only has to pay an interest rate of 1.8%.
However, Spain’s descent into the financial abyss is important for more than the fact that it is – like Italy – an enormous economy that may be too big to rescue.
It is because Spain does not fit the narrative.
Strange Random Spain Quote:
- North East holiday makers choose Spain, but for how much longer? (travelnews.britishairways.com)
- BBC News – Is trillion the new billion? (fourbluehills.com)
- Greece welcomes tourists wary of the ‘Arab Spring’ (travelnews.britishairways.com)
- Eurozone focus video: Powerful Eurozone cocktail ahead of EU summit (tradingfloor.com)