http://in.reuters.com/article/2012/07/08/spain-economy-schauble-idINDEE86704S20120708
Spain's borrowing costs have soared back to crisis levels after infighting among eurozone countries signalled a return to the turmoil that has rocked the global economy in recent months.
The interest rate on Spanish bonds touched 7 per cent, leaving Madrid on the brink of asking Brussels for a formal bailout, despite having secured a €100 billion ($120 billion) rescue facility for the country's banks.
http://www.smh.com.au/world/spain-teeters-as-eurozone-unity-tested-20120707-21nrq.html
Rajoy Calls on EU to Deliver Debt Purchases as Spain Yields Rise
Spanish Prime Minister Mariano Rajoy said euro-zone countries must urgently implement decisions including government bond purchases agreed to in June as the country can’t finance its deficit under current conditions.
The premier said he will announce additional measures this month to control the country’s budget shortfall. Spanish regional leaders must cut more spending as tax revenue slumps amid the country’s second recession since 2009, he said today in a speech in Navacerrada near Madrid.
“It’s time to go from words to deeds,” Rajoy said. “Europe must comply as quickly as possible with the agreements its leaders reached in Brussels. The European project is at stake.”
The additional yield investors demand to hold Spanish 10- year bonds rather than benchmark German bunds rose to 563 basis points yesterday from 486 basis points on July 2.
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