Spain pushed to the brink of full bailout

EurActiv reported that Spain paid the second highest yield on short-term debt since the birth of the euro at an auction on the 24 July 2012), prompting market watchers to warn that such levels were not sustainable and that the EU’s fourth largest economy would need a bailout the eurozone can barely afford.

The previous day Spain central bank had reported in its Economic Bulletin for July 2012 that Spain's economy sank deeper into recession in the second quarter of 2012.

Serious financial problems in some of the autonomous regions in Spain also resurfaced. Catalonia said on the 24 July 2012 that it would follow Valencia and Murcia in asking for help from the central government to overcome its financial problems.

EUObserver, 25.7.12: Spain in political blunder as bailout likelihood increases http://euobserver.com/19/117056

ESO: Background information: Bank bailout fails to ease Spain concern http://www.europeansources.info/record/bank-bailout-fails-to-ease-spain-concern/

BBC News, 24.7.12: Spain under new pressure as borrowing costs rise http://www.bbc.co.uk/news/business-18971041

EurActiv, 25.7.12: Spain puts the heat on eurozone http://www.euractiv.com/euro-finance/spain-puts-heat-eurozone-news-514107

Bank of Spain: Economic Bulletin http://www.bde.es/webbde/en/secciones/informes/boletines/Boletin_economic/anoactual/

The Guardian, 24.7.12: Spanish bailout is now inevitable (via PressEurop) http://www.presseurop.eu/en/content/article/2402551-spanish-bailout-now-inevitable

El País, 24.7.12: Catalonia joins Valencia and Murcia in seeking help from central government http://elpais.com/elpais/2012/07/24/inenglish/1343141101_884127.html

El País, 24.7.12: Spanish financial markets remain under siege http://elpais.com/elpais/2012/07/24/inenglish/1343155630_796185.html

EurActiv, 27.7.12: Officials say Spain on verge of €300 bn bailout http://www.euractiv.com/euro-finance/officials-spain-verge-300-bn-bai-news-514183

EUObserver, 27.7.12: ECB chief indicates upcoming help for Spain http://euobserver.com/19/117077

---