Spain announced today they will contribute €3.9bn towards the Greek bailout. Of course they don’t have that sort of money without creating more debt. The markets reacted by increasing Spanish Bond yields. If that trend continues Spain will soon be asking for a bailout of their own.
I believe the true state of Spain’s economic woes have not yet been revealed. It’s not an open economy. The austerity measures they are announcing are no way near enough.
Investors are becoming very nervous about the Eurozone and consequently the value of the Euro on world markets is dropping.