Spanish PM postpones holiday as pressure on economy grows
Published 02/08/2011 | 13:50
Spanish Prime Minister Jose Luis Rodriguez Zapatero postponed his scheduled summer holiday today in a bid to deal with growing economic worries.
Mr Zapatero had been scheduled to leave on his summer holiday to the Donana national park in southwest Spain with his family
But the interest demanded to lend money to Spain moved up to 3.3pc while the equivalent rate in Italy hit its highest level in the euro’s history.
Ireland's 10-year yield fell to below 11pc although we are still priced out of borrowing from the international markets at this rate.
European stock markets also fell this morning due to worries that slowing economic growth will make it harder to overcome sovereign debt problems led by countries like Greece and Ireland.
While the European Commission said Italy and Spain were taking necessary action to keep their economies on track this did little to pacify markets.
Markets fear that the contagion from Greece will spread to larger EU countries like Spain and Italy.
Italy, at 120pc of economic output, has the highest debt to gross domestic product ratio of any euro zone nation except Greece, which is nearing 160pc.