Emergency talks are being held between EU ministers over a bailout for Spain, the fourth largest eurozone economy. Reports of a request for a possible €100 billion have emerged.
The Telegraph reported a senior EU official said "The amount on the table at the moment is as much as up to €100bn but this hasn't been decided yet." Swedish Prime Minister Fredrik Reinfeldt confirmed the statement by saying "There was a question of more than €80bn. It is in fact a question of one of the biggest financial rescues in recent history."
The Guardian reported Spain's senior banker, Santander boss Emilio Botin, "has said €40bn would be enough." However, this amount could just be a preliminary bailout figure with further assistance required down the line. Ratings agency Fitch has estimated between €50bn and €100bn will be required to re capitalize Spanish banks. JP Morgan put the figure much higher at €350bn.
Digital Journal reported it is imperative that an agreement is reached between Spain and its potential creditors prior to the second Greek election due to be held on June 17. If the election results in a Greek exit from the euro it will likely send the financial markets into free-fall.
If a Spanish bailout goes ahead it is unlikely to come with such stringent austerity conditions as those applied to Greece, but will concentrate on structural reforms and measures to restore growth.