A study by Open Europe, a leading think-tank, has warned that the current bank rescue plan in Spain is clearly insufficient, while a full bail-out – which would require around €650 billion – is impossible.
The warning has been based on the assumption the Spanish government would be forced out of the markets for three years because of its unsustainable borrowing costs, similar to what happened to Greece, Ireland and Portugal.
Based upon the population of the Eurozone in 2012, a €650 billion bailout would cost every man, woman and child €1,952.90 in one way or another, such as taxes etc. Staggering thought.
The talk of a possible bail-out for Soain has re-emerged after several regions announced their intention to seek an internal bail-out from the Central Government, coupled of course with the unsustainable high cost of borrowing for the Spanish government.