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Europe right now the states are getting higher for Spanish banks Ashley Webster in Madrid with the latest -- Very idea what they need is completely different from realists who say it's -- -- more that the Spanish banks need.
Yeah exactly you know and it's hard to know who to believe certainly the people have spoken with here in Madrid have actually skepticism when it comes to what their political and financial leaders are telling them.
As you just mentioned the latest stored it says under a worst case scenario Spanish banks sell the fourteen banking groups they -- which is about 90% of the whole.
Could need up to 78 billion dollars under a worst case scenario that's a lot less than a 126 billion that the EU said that he will be prepared to land.
But the problem is the lack of well Craig.
Credibility I think his what's leading fears -- -- belief that Spain needs a full blown to bail out.
But in the meantime the news later today -- a little late decide this evening here in Spain.
It's that -- -- ten perhaps a view that the EFSF that's a temporary bailout fund set up by the EU.
Could indeed by the sovereign debt of both Spain and Italy.
That would then be transferred to the permanent ESM the stability mechanism Europeans that -- stability mechanism that will come into being next month.
This is something that the Italians on the Mario Monti have been pushing -- for quite some time Spanish prime minister Mariano Rajoy as well.
This is something that Germans have strongly said no to but as you know about mrs.
Merkel has been no -- awful lot of pressure going all the way back to the most recent Camp David meeting when she was.
Reportedly courted by President Obama and other European leaders she's under fire from our own political hot do you say you should not back down.
But it appears the Germany will indeed.
Perhaps allow that to stability fund -- bailout fund to buy the debt of Spanish and Italian sovereign bonds so it's all very interest think the bottom line is that banks.
They do need help despite the fact that originally as you know list the Spanish.
Politicians and financial leaders said.
-- -- banks are fine don't worry about it turns out they did need some help they've got so many bad loans on their books from the collapse of the housing market but that does indeed raise concerns about Spain's economy.
As a whole what happens if it needs a rescue is there enough money in the kitty to actually bail it out and that is why this is cloud.
Hanging over not only Spain in the eurozone but the global economy.
Okay time to actually thank you excellent reporting.
It ought to Spain needs about 62 billion to certain.
Euros and that would be about 65 billion US dollars and that's the figure that some realists are putting out there they're saying 024 to 34 right it's way more than that.
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