The Spanish government becomes upset at the extreme thought, and revealed its debt burden and says it is not very heavy. It is a country which only a few years ago had blooming growth but is now put up with other deficit-loaded countries like Greek-style crisis.
The downfall of real estate and consumer-fueled crash has made Spain to suffer from Eurozone high jobless rate of about 20 percent, and the government had build up a deficit which in 2009 corresponded to 11.4 percent of GDP.
Spanish officials argue they are more fortunate in several respects. It has no integrity problems like Greece, which is liable of exaggerating its debt numbers, and its banking system is almost sound compared with other countries that had to warrant their banking systems out.
Spain had tried to drift its way out of recession by creating costly jobs and motivation measures, increasing a budget shortfall that has alarmed markets and lenders. Spanish sovereign debt is under pressure, with creditors appealing for elevated interest rate to buy it and rates also increasing for insurance. Spain’s economy is much bigger than that of Greece, so it’s a far huge problem for the European Union and the Euro if markets create to doubt regarding Spain’s ability to pay.
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