Spain called on Monday for the European Central Bank to step in to fight financial market pressure after any hopes that the Greek election result might ease the strain on vulnerable Spanish and Italian debt were dashed…
The yield on Spain’s 10-year bond went above the 7 percent widely viewed as unsustainable. Italy’s was just above 6 percent.
“The financial markets … aren’t relaxing their pressure on Spain. Doubts continue regarding the construction of Europe, about the present and the future of the euro,” Treasury Minister Cristobal Montoro told the Spanish Senate during a budget hearing.
“The ECB must respond firmly, with reliability, to these market pressures that are still trying to derail the joint euro project.”
Within a few hours of the election result – a narrow win for Greek parties committed to the terms of a European Union/International Monetary Fund bailout – financial markets reacted as if nothing had changed.
I guess because nothing had. – Lee Adler