Valencia Regional Government seeks bailout

This topic contains 6 replies, has 3 voices, and was last updated by  logan 5 years, 2 months ago.

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  • #56940

    logan
    Participant

    Today the Valencia regional government requested a bailout from central government. They owe an estimated €80bn and needs €20bn immediately. No surprise, it’s been predicted for months.

    Ibex falls 5.75%, Euro loses more ground, Sterling over 1.28. Spanish 10 year bond yields 7.35%. Unsustainable.

    The big question now is how the central government can bail them out without assistance from the EU. Other regions may now follow.

    This is a separate issue from the bank deal bailout which was approved by the German parliament today, just.

  • #111036

    angie
    Spectator

    Is the Valencia Regional Government in the most dire situation in Spain or are the other Regional Governments in as bad a way as them? Are there regional stats for this?

    No doubt if any are, they will also ‘Hunt’ a Central Government bailout too 🙄 🙄

  • #111037

    logan
    Participant
  • #111044

    angie
    Spectator

    Well, that’s put me right off moving to Valencia now 😛

    Spain’s problems just got a whole lot worse methinks 🙄

  • #111056

    Chopera
    Participant

    What is Rajoy going to ask from Valencia in return for a bailout?

  • #111061

    logan
    Participant

    Loss of some sovereignty Chopera and more direct controls. No bad thing.

  • #111095

    logan
    Participant

    Yesterday Murcia regional government became the second domino to fall in the bailout stakes. How long before the largest regional economy of Catalonia falls?

    I have been warning for at least 3 years on here that Spanish regional government spending was out of control under Zapatero who simply turned a blind eye. The PP took over and tried to hold the line but this disaster was always going to happen.

    Collectively the Spanish regions have to repay or refinance €36bn Euros in 2012. The central governments has only set aside €18bn.

    I think we will soon see the end of autonomous regional government in Spain and that’s no bad thing.

    http://www.guardian.co.uk/world/2012/jul/22/markets-fear-for-spanish-economy

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