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EU leaders to thrash out multi-billion pound rescue package for Spain as it faces bankruptcy

Allan Hall
UK Daily Mail [1]
June 14, 2010

EU leaders are meeting this week to thrash out a rescue package for Spain as its economy teeters on the brink.

News of the behind-the-scenes scramble in Brussels spells bad news for the British economy as many of our major banks have loaned Spain vast sums of money in recent years.

Germany’s authoritative Frankfurter Allgemeine Newspaper reported that Spain is poised to ask for multi-billion pound credits.

It said Manuel Barroso of the EU Commission and Jean-Claude Trichet of the European Central Bank are united on the need for a rescue plan.

The looming bankruptcy of Spain, one of the foremost economies in Europe, poses far more of a threat to European unity and the euro project than Greece. 

Greece contributes 2.5 per cent of GDP to Europe, Spain nearly 12 per cent.

The FAZ reported German government insiders telling it: ‘We will lead discussions this week in Brussels concerning the crisis.

Full article here [1]