Speculation built last week that Spain is finally about to ask for a bail-out and hence trigger the European Central Bank’s new bond-buying programme, giving Spanish bond yields another nudge downwards and no doubt contributing to the success of Thursday’s debt auctions. But the markets’ high expectations have increased the scope for disappointment. A watered down, half-hearted bail-out for Spain – in which governments avoid putting up hard cash themselves and instead rely on the ECB to both conduct monetary policy and enforce fiscal policy – would carry a high risk of delivering that disappointment.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services