“We’re in a scenario of total emergency, the worst crisis we have ever lived through” said ex-premier Felipe Gonzalez, the country’s elder statesman.

The warning came as the yields on Spanish 10-year bonds spiked to 6.7pc, pushing the “risk premium” over German Bunds to a publish-euro substantial of 540 basis factors. The IBEX index of stocks in Madrid fell 2.6pc, the lowest since the dotcom bust in 2003.

The buzz is that Greece is an afterthought and that the Euro either lives or dies primarily based on the quick response to Spain.

Matthew Lynne at MarketWatch argues that Spain will leave the Euro prior to Greece, a comment that sounds preposterous, but which is interesting as an emblem of the way individuals are speaking about Spain.

Matthew Yglesias at Slate has the very same consider, despite the fact that a bit much more sober. “Greece is a distraction,” he says.

The point anyway isn’t so significantly that Spain is in a state of crisis, but that it really is in a state of crisis that will demand some kind of quick response.

Let’s see if Europe is up for it.

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