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Pain in Spain

It’s not overestimating the state of things by saying that Spain has reached an economic crisis point.

With protesters on the street, unemployment at record levels and its economic rating already downgraded, opinions are divided as to whether it will soon need a bailout.

Christina Weisz of foreign exchange specialist Currency Solutions thinks so: ‘Will Spain require a bail-out? I certainly think so, and with an economy that dwarfs Portugal, Greece and Ireland put together, the EU and IMF face serious challenges going forward. However, the key factor is not the bail-out itself, but the possible need for restructuring that Greece is currently experiencing, she said.’

Jeremy Cook, economist at World First, is not so sure, summing up the situation thus, saying: ‘With Greece teetering on the brink of a default, and the economic woes of the peripheral nations continuing to pose a serious threat to the stability of the eurozone, we live in turbulent times.

‘There’s no doubting that a Spanish bailout remains a very real possibility albeit an unlikely one. We feel the eurozone is likely to begin to feel the strain of the burden of the debt crisis in fringe nations in a more pronounced way in the next few months.’

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