Three new problem arise, Spain crisis deterioration, may obtain financial relief this season
According to the Washington Post, Spanish crisis had a sudden deterioration in recent days, mainly because of the emergence of three new issues. First, the Spanish Government revised economic forecast for next year from the original growth of 0.3 percent to shrink by 0.5%.
Second, recall that in June, EU leaders agreed to seek relief to the Spanish banking sector, also promised that such relief will not increase the financial burden in Spain. However, recently the German parliament agreed to the bailout but comes with condition Spanish government must assume full responsibility for the relief, It represents the Spanish Government embarrassment financial must also increase the burden of $ 122 billion.
Third, under greatly sluggish economy and reduced the central government subsidies, Spanish local financial ends meet, local government Valencia credit crunch has exposed and to seek assistance from central government.
Experts point out that, Spanish local governments is now completely unable to fund-raising in the international capital markets. Valencia suffered, may also be a portrayal of the other local governments.
Due to fears that Spain may also be required to seek financial relief, Spain's 10-year bond yields again broken 7%, the down debt critical point, to 7.29%.
According to the Washington Post, Spanish crisis had a sudden deterioration in recent days, mainly because of the emergence of three new issues. First, the Spanish Government revised economic forecast for next year from the original growth of 0.3 percent to shrink by 0.5%.
Second, recall that in June, EU leaders agreed to seek relief to the Spanish banking sector, also promised that such relief will not increase the financial burden in Spain. However, recently the German parliament agreed to the bailout but comes with condition Spanish government must assume full responsibility for the relief, It represents the Spanish Government embarrassment financial must also increase the burden of $ 122 billion.
Third, under greatly sluggish economy and reduced the central government subsidies, Spanish local financial ends meet, local government Valencia credit crunch has exposed and to seek assistance from central government.
Experts point out that, Spanish local governments is now completely unable to fund-raising in the international capital markets. Valencia suffered, may also be a portrayal of the other local governments.
Due to fears that Spain may also be required to seek financial relief, Spain's 10-year bond yields again broken 7%, the down debt critical point, to 7.29%.
