by Jason Moore

When is the Spanish Prime Minister Mariano Rajoy finally going to admit that Spain needs a bailout? Already the Spanish banks are due to receive a bailout of about 60 billion euros but the Spanish government needs much more. All of Spain´s regions are seriously in debt (even the Balearics is pondering the possibility of asking the central government for a bailout). The longer Spain waits, the worse it is going to be for the Spanish economy and the euro-zone as a whole. Now obviously Spain would like to avoid a bailout at all costs. The European Central Bank would probably demand evenmore cuts in return for cash for the Spanish economy. But Rajoy must swallow his pride and do the right thing for Spain and the euro-zone. Until the Spanish crisis is resolved then the euro zone will not be able to return to normal. At the start of the year many thought that the euro would not survive if Spain doesn´t act soon, they could be saying the same thing next year.