Is Spain next in line for a Greek style bail-out? Spanish Finance Minister Luis de Guindos does't think so, at least not for the moment.
Spain is at the center of a financial storm as markets pushed the cost of its bonds to soar above 6%. In a bid to calm the markets and keep Brussels happy, the Spanish government on Tuesday announced a 10 billion euro slash in its public spending. The European commission welcomed the move, which comes on top of 78 billion euros in cuts presented in March.
The additional austerity measures will mainly affect the health and education sectors. University fees will probably go up, as will healthcare costs for high-income families. Some experts believe that more austerity measures won't help and will push Spain into a recession.
The head of Spain's central bank has warned that if the Spanish economy does not recover soon, banks will be in need of public capital aid.
The European Commission wants to see a detailed breakdown of the Spanish central and regional budgets before the end of this month.
The top executive of the autonomous Madrid region has said that Spanish regions should give their powers in education and health issues to the central government in order to save money. Her comments have not gone down well.