Shaky foundations


January 2011. The potential cost of bailing out Spain is one of the main causes of anxiety about the euro’s survival. Government debt levels are not terribly high. But there is a substantial contingent liability in the banking sector and the fallout from a collapsing property price and lending bubble has yet to be fully felt. In this paper, we look at government and bank indebtedness in Spain. (Leer aquí)

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