Ireland, Greece and now Portugal have been forced to request a bailout because it’s market borrowing costs have become unsustainable. Market sentiment turned against these countries because they could not impose by themselves sufficient financial austerity to reduce their debt levels.
An EU/IMF bailout means imposed austerity and of a great deal pain for the population.
The real question is has Spain done enough on their own to keep market sentiment on their side. In the coming weeks Spain’s bond yield spreads will give us the answer.
At the moment the market signs look fairly positive but they still have to deal with the looming banking crisis.
I believe it’s only political problems which will threaten the Euro not financial difficulties within member states. The voters in the end have the real power to change the status quo.
The difficulty is apathy among the electorates of Europe who have other domestic concerns.