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.
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 🙄 🙄
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.
This website uses cookies to improve your experience. If you continue to use the website you agree to our use of cookies. You can find out more here. Accept
Cookies
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.