Particularly badly affected was the Spanish Ibex stock exchange, which tumbled as Greece’s admission about their financial nightmare led to panic.
The flames of worry have been fanned somewhat by the President of the United States, Barack Obama (above), who has warned that the sovereign debt crisis in Spain poses a “great problem” to the Eurozone’s recovery. He rightly urged the Eurozone members to act fast to seek a common economic policy and deeper fiscal integration to deal with the sovereign debt crisis which threatens to spread to Spain and Italy. Obama also called on countries with a budget surplus to help those in crisis, an act which he believes will steady the markets and give them confidence.
The Spanish Government has so far refused to comment on President Obama’s remarks – Economic Minister Elena Salgado sidestepped questions by reporters this morning on the issue.
However, the PSOE’s presidential candidate, Alfredo Pérez Rubalcaba, appearing alongside Salgado, explained that Obama was simply urging Eurozone members to “stop the contagion”. He went further, suggesting that the key is to resolve the Greek problem and “isolate” that country to prevent contagion to the rest of the economies.