Spain’s borrowing costs have risen to their highest rate since the introduction of the euro. It suggests the markets don’t believe the country’s 100 billion euro bailout will be enough to save its ailing banking system.
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Yesterday, Italy’s Prime Minister Mario Monti rejected suggestions by the Austrian Finance Minister Maria Fekter that Italy may soon be forced to follow Spain into a bailout.
But, Owen Callan – senior dealer at Danske Bank – says the situation in Italy is very different to Spain:
