Spain on Monday will formally ask its Eurozone partners for up to €100bn to recapitalise its banks, opening a week of diplomatic activity that will culminate in a EU summit on Thursday night to address the region's damaging sovereign debt crisis. Other crucial disputes have yet to be resolved, including whether the aid money should go directly to the banks rather than to the Spanish government as currently envisaged, on the grounds that a loan to the sovereign simply increases Spain's public sector debt and makes it even more difficult to borrow commercially.

 

Posted by Mike Moloney | Account Executive