Tuesday, July 24, 2012

The Pain in Spain continues

From NYTimes.com

Original source

MADRID — The euro zone crisis refuses to take a summer vacation.

Financial markets flared anew Monday, despite various moves by European officials in recent weeks to buy the time that might let the money minds of Brussels and Frankfurt take a euro-policy vacation until September.

The main trigger seemed to be the fact that Spain’s borrowing costs hit a record level, on investor concerns that a deepening recession and the financial strains on its regions might eventually lead the government to seek a Greek-style bailout from Europe. And those worries were hardly eased by new signs that Greece’s bailout may not be working out so well, either.

A chief worry once again is that Europe, which has already spent or pledged about €270 billion, or $327 billion, trying to rescue tiny Greece, would be hard-pressed to find the money to salvage an economy the size of Spain’s, the euro zone’s fourth-largest after those of Germany, France and Italy.

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Jul 23, 2012 by AlJazeeraEnglish

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