SPAIN 2

AROUND A 10TH OF SPAIN GDP ( ALMOST 100 BILLION EUROS IN CAPITAL ) HAS LEFT SPAIN IN THE FIRST THREE MONTHS OF 2012.

SPAIN WAS THE CENTRAL FOCUS OF THE EURO-ZONE CRISIS THIS WEEK.

INVESTORS ARE SELLING SPANISH ASSETS WHILE THE YIELD ON SPANISH TEN-YEAR GOVERNMENT BONDS REACHED 6.65% AND THE SPREAD OVER GERMAN BUNDS HIT NEW HIGHS.

ALMOST 100 BILLION EUROS IN CAPITAL HAS LEFT THE COUNTRY IN THE FIRST THREE MONTHS OF 2012 AS CONCERNS MOUNTED OVER MADRID’S ABILITY TO CONTAIN ITS ECONOMIC AND FINANCIAL CRISES WHICH FORCED GOVERNMENT BORROWING COSTS TO EURO-ERA HIGHS.

BANKIA, THE 4TH-LARGEST BANKING GROUP, REQUESTED A 19 BILLION EUROS BAIL-OUT FROM THE STATE, RAISING QUESTIONS ABOUT HOW MUCH HELP OTHER BANKS IN SPAIN MIGHT NEED.

TIME HAS COME TO PREVENT A MAJOR EUROPEAN BANK RUN !

ON MAY 30TH THE EUROPEAN COMMISSION SAID THERE OUGHT TO BE « FULL ECONOMIC AND MONETARY UNION, INCLUDING A BANKING UNION; INTEGRATED FINANCIAL SUPERVISION AND A SINGLE DEPOSIT GUARANTEE SCHEME ».

SOURCE : CNN, THE ECONOMIST, WSJ.

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