Spain is heading for a general bailout. It may not happen immediately, but that is what the figures suggest – that sometime in the autumn, maybe sooner, the country will need a full-blown rescue.
It is fiercely denied, of course. The Spanish Economy Minister, Luis de Guindos, said “Spain is a solvent country, there will be no bailout… I believe that Spain is a competitive country. We have a trade surplus with the eurozone, we have a very competitive tourism sector”.
Then there are the facts on the ground. The bailout of the Spanish banks – sealed last Friday – lacks conviction. House prices are still falling. Indeed in the second quarter they were declining at the fastest rate since the start of the crisis. The real estate bubble, stoked by the eurozone’s low interest rates, continues to take its toll.
Read it all.
(BBC) Gavin Hewitt–Spain's euro woes: Crisis deepens
Spain is heading for a general bailout. It may not happen immediately, but that is what the figures suggest – that sometime in the autumn, maybe sooner, the country will need a full-blown rescue.
It is fiercely denied, of course. The Spanish Economy Minister, Luis de Guindos, said “Spain is a solvent country, there will be no bailout… I believe that Spain is a competitive country. We have a trade surplus with the eurozone, we have a very competitive tourism sector”.
Then there are the facts on the ground. The bailout of the Spanish banks – sealed last Friday – lacks conviction. House prices are still falling. Indeed in the second quarter they were declining at the fastest rate since the start of the crisis. The real estate bubble, stoked by the eurozone’s low interest rates, continues to take its toll.
Read it all.