Quote:
Originally Posted by DirtyWhiteBoy
At first I heard "Spain is too large to bail out" and now it is being considered. What's the deal with that?
|
Spain is Europe's fourth largest economy and a bailout sum would be so huge, either there would not be enough funds for the bailout, or if there were, it could wipe out any funding left for other EU member states who may need it.
However, it seems that funding from outside the EU, or directly from the IMF is being considered if Spain does need a bailout.
The problem for both Spain and Portugal is that rumours that they will be next to fail have led to loss of confidence on the financial markets so it's a knock on effect.
Until the Ireland bail out, Spain was looking like it would make it, but now they're back in the spotlight again, along with recent complants of 'enough is enough' from the German chancellor, which are not particularly confidence inspiring either.