Spanish bailout would be fatal for Eurozone

first_img Tags: NULL Share whatsapp KCS-content Spanish bailout would be fatal for Eurozone Read This Next’A Quiet Place Part II’ Sets Pandemic Record in Debut WeekendFamily ProofHiking Gadgets: Amazon Deals Perfect For Your Next AdventureFamily ProofYoga for Beginners: 3 Different Types of Yoga You Should TryFamily ProofBack on the Rails for Summer New York to New Orleans, Savannah and MiamiFamily ProofAmazon roars for MGM’s lion, paying $8.45 billion for studio behind JamesFamily ProofIndian Spiced Vegetable Nuggets: Recipes Worth CookingFamily ProofNew England Patriots’ Cam Newton says no extra motivation from Mac Jones’SportsnautTortilla Mango Cups: Recipes Worth CookingFamily ProofWhat to Know About ‘Loki’ Ahead of Disney+ Premier on June 9Family Proofcenter_img whatsapp by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailPeople TodayNewborn’s Strange Behavior Troubles Mom, 40 Years Later She Finds The Reason Behind ItPeople TodayWanderoamIdentical Twins Marry Identical Twins – But Then The Doctor Says, “STOP”WanderoamZen HeraldNASA’s Voyager 2 Has Entered Deep Space – And It Brought Scientists To Their KneesZen HeraldHealthyGem”My 600-lb Life” Star Dropped 420 Pounds, See Her NowHealthyGemAlphaCute30 Rules That All “Hells Angels” Have To FollowAlphaCuteTaonga: The Island FarmThe Most Relaxing Farm Game of 2021. No InstallTaonga: The Island Farm Show Comments ▼ ATTENTION has turned to the Eurozone’s fourth largest economy as Spain’s leaders scramble to assure the markets that it will not follow Ireland’s lead.Most agree that a Spanish bailout would be potentially fatal for the euro and would exhaust the €440bn of Eurozone funds set aside for emergency aid to its teetering economies. Economists at Fathom Consulting highlighted wrote yesterday: “Spain’s GDP is almost twice the size of Portugal, Greece and Ireland combined and therefore any hint of trouble would send shockwaves through the euro area.”The government has implemented a severe austerity plan and has managed to slash its deficit this year to comply with its target of 9.3 per cent for 2011 (versus over 11 per cent last year). But its leaders are painfully aware that even Ireland’s much-praised €15bn of cuts this year did not keep it safe from the market panic. Spain held a successful auction of short-dated government debt yesterday, selling off €3.26bn’s worth of three and six-month gilts, but the cost of its borrowing had nearly doubled since its last such auction a month ago. Most regard the punitive yields being demanded – 10-year gilt yields jumped above five per cent today – as unsustainable. However, the government has built up a less daunting mountain of debt than has Ireland: its debt is estimated at 60 per cent of GDP versus 100 per cent. Wednesday 24 November 2010 9:03 pmlast_img read more