Zam-Zam
Senator
MADRID — Spain's borrowing costs rose Tuesday to levels not seen since early January, raising concerns that the financial crisis in Europe was heating up again after a lull.
The latest concerns in the financial markets come after a Spanish bond auction April 4 that barely met the minimum amount sought, a sign that some investors worry that Spain might eventually follow Greece, Ireland and Portugal in seeking a bailout from stronger European nations.
Spain is entering its second recession in three years, and the government expects the economy to contract about 1.7 percent in 2012. With unemployment around 23 percent, there is fear that austerity measures, deemed crucial for winning back market confidence, could further depress growth and create a cycle in which more budget cuts are needed to balance the Spanish government's books.
On Tuesday, Luis de Guindos, the economy minister, insisted that the government would not be distracted by short-term market fluctuations and would stick to the austerity program needed to put Spain back on track for meeting its deficit-cutting targets.
He also played down the significance of the disappointing debt auction, noting that the Spanish Treasury had already met almost half of its debt-sale goals for the year.
Complete text: http://www.statesman.com/business/spains-finances-raise-fears-of-resurging-debt-crisis-2295803.html
Keep an eye on Europe..........
The latest concerns in the financial markets come after a Spanish bond auction April 4 that barely met the minimum amount sought, a sign that some investors worry that Spain might eventually follow Greece, Ireland and Portugal in seeking a bailout from stronger European nations.
Spain is entering its second recession in three years, and the government expects the economy to contract about 1.7 percent in 2012. With unemployment around 23 percent, there is fear that austerity measures, deemed crucial for winning back market confidence, could further depress growth and create a cycle in which more budget cuts are needed to balance the Spanish government's books.
On Tuesday, Luis de Guindos, the economy minister, insisted that the government would not be distracted by short-term market fluctuations and would stick to the austerity program needed to put Spain back on track for meeting its deficit-cutting targets.
He also played down the significance of the disappointing debt auction, noting that the Spanish Treasury had already met almost half of its debt-sale goals for the year.
Complete text: http://www.statesman.com/business/spains-finances-raise-fears-of-resurging-debt-crisis-2295803.html
Keep an eye on Europe..........