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In Spain’s bailout request, Greece’s crisis played key role – The Washington Post

Spain was forced to seek a bailout this weekend, becoming by far the largest country to need help during Europe’s 2 1 / 2-year-long economic crisis. But it was tiny Greece that pushed Spain over the brink.

Greek voters head to the polls Sunday with a stark choice between leaders who accept the harsh terms of the bailouts that have kept their country afloat and those who reject them, potentially at the cost of Greece’s future in the euro zone. Fears that a Greek rejection would send markets into panic about the currency union’s future pushed Spain to seek the aid ahead of Greece’s election.

But the mere possibility of a victory for anti-bailout forces in Greece helped exacerbate Spain’s problems in the first place, boosting its government’s borrowing costs and causing a slow-motion bank run that weakened its financial system…

via In Spain’s bailout request, Greece’s crisis played key role – The Washington Post.

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