After clinching Spain’s €100 billion bank bailout, Prime Minister Mariano Rajoy flew to Poland on Sunday for the Spanish team’s soccer match, declaring “this matter is now resolved.”
Not so fast, prime minister.
On Tuesday, Spain’s long-term borrowing costs soared to their highest level since the country joined the euro zone. Investors have apparently concluded that the rescue is potentially a much better deal for the banks and their shareholders than for the government, its taxpayers and bondholders.
In a darkly hilarious rant in the European Parliament Nigel Farage has managed to sum up the complete absurdity of Italy borrowing at 7% to lend to Spain at 3%