Ambrose Evans-Pritchard: Spain faces race against time to escape bailout
Published 23/11/2011 | 05:00
Markets have dashed any lingering hopes of an investor honeymoon for Spain's incoming leader Mariano Rajoy, pushing borrowing costs for the stressed nation to toxic levels.
Spain was forced to pay 5.11pc for three-month borrowings yesterday -- higher than rates paid by the stricken Greek central bank for its borrowings last week.
Mr Rajoy, leader of the centre-right Partido Popular (People's Party), which swept to power with an absolute majority at elections this week, is scrambling to find ways to bridge the paralysing hiatus until mid-December when the new government is finally able to take charge under Spanish law.