Spanish Unemployment Hits Record 25%
Coming austerity cutbacks are expected to drive the rate even higher in the year to come.
Discord Rules Before EU Summit
Tempers are flaring in the run-up to the 20th EU summit since the onset of the eurozone debt crisis.
Euro Leaders, Soros Press Merkel on Joint Finance
Chancellor Angela Merkel of Germany was in a tight spot as fellow eurozone leaders turned up the heat on the issue of joint debt for the bloc.
G-20 Boosts IMF Firewall, Pressures Germany
At the summit meeting of G-20 leaders in Los Cabos, Mexico, the focus was on strengthening the firewall of the IMF and pushing Germany to relent on pooled debt and increasing deficit spending.
Spain Accepts Bailout
Spain accepted a bailout Saturday for its financial sector, and Italy stepped up into the spotlight over concerns that it may be the next country to request aid.
Europe’s Crisis Focus Shifts From Greece to Spain
Concerns eased a bit over the possibility of a Greek exit from the euro zone as Saturday polls showed rising support for pro-bailout parties in that country. But attention turned to Spain as earlier estimates of funding needed for a bailout of its largest bank looked to be seriously undervalued.
Spanish Banks Downgraded
Moody’s cut the ratings of 16 Spanish banks, taking Banco Santander and Banco Bilbao Vizcaya Argentaria down three notches each. Fitch, meanwhile, dropped Greece into its lowest level in junk territory.
Yields, Demand Both up on Spanish Bonds
While investors may be jittery about Spain’s financial condition, they jumped on higher yields to scoop up bonds at an auction beyond what Madrid had hoped to sell.
Spain Faces Tough Haul
Already mired in debt and unemployment, Spain has been told that the target deficit rate of 5.8% of GDP that new Prime Minister Mariano Rajoy declared only 10 days ago is inadequate, and Madrid must seek a faster reduction in its deficit.
Spain in EU Crosshairs Over Austerity Delay
Even as it has lost patience with Greece over what it sees as inadequate and halfhearted attempts to implement austerity, the EC has a bone to pick with the new Spanish government, which it will likely sanction over a number of issues.