Spain is clearly the next big problem in the seemingly never ending euro crisis. Foreign Minister Jose Manuel Garcia-Margallo has admitted that Spain faces a "crisis of huge proportions", with unemployment already at 24% and another downgrade of government debt:
Unemployment shot up to 24 percent in the first quarter, one of the worst jobless figures in the developed world. Retail sales slumped for the twenty-first consecutive month as a recession cuts into consumer spending.
"The figures are terrible for everyone and terrible for the government ... Spain is in a crisis of huge proportions," Foreign Minister Jose Manuel Garcia-Margallo said in a radio interview.
Standard and Poor's cited risks of an increase in bad loans at Spanish banks and called on Europe to take action to encourage growth.
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The problem is that there is no solution to the euro crisis, according to Tim Worstall, writing in Forbes. The huge transfers of money to the Southern European countries that would be needed to "save" the euro, are not forthcoming: