July 20, 2012 at 3:14 pm #56940
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.
July 20, 2012 at 3:45 pm #111036
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 🙄 🙄
July 20, 2012 at 4:01 pm #111037
Stats in March 2012 here:
How long before Castille La Mancha falls?
July 20, 2012 at 5:32 pm #111044
Well, that’s put me right off moving to Valencia now 😛
Spain’s problems just got a whole lot worse methinks 🙄
July 20, 2012 at 9:39 pm #111056
What is Rajoy going to ask from Valencia in return for a bailout?
July 21, 2012 at 6:41 am #111061
Loss of some sovereignty Chopera and more direct controls. No bad thing.
July 23, 2012 at 6:24 am #111095
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.
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