Rajoy was sharply reprimanded by the opposition as borrowing costs hit a new record low, even after a 100 billion euro loan to banks as an aid to repair the country's economy.
Gary Jenkins, founder of Swordfish Research Ltd. said that "Spain needs someone who can take matters into their own hands and resolve them, without pretending that everything is fine."
Financial relief to Spain would make Italy the next bait for future financial aid from the banks.
In the recent G-20 in Mexico, even the Spanish Prime Minister was forced by German Chancellor Angela Merkel to disclose the exact figure of how much liquidity he needs from banks "as soon as possible". Just today this will be one of the main topics of discussion at the meeting between Merkel, the newly elected French President Hollande and the Italian Premier Mario Monti, who will host the event in the Italian capital.
What do the Germans think? Thomas Mayer, an economic advisor at Deutsche Bank, expressed his thoughts in these terms: “the Spanish crisis was absolutely avoidable. The crisis was caused by mismanagement of how the PM's press department communicated the crisis."
