The Spanish financial system seems to be sinking deeper and deeper into recession even as depositors have begun to pull out their money from banks in Spain. On the other hand, reports published on Tuesday indicated that Catalonia, the most financially significant area of the country, was in need of a major European rescue package from the capital city of Madrid.
Spain is considered to be an epicenter. The country is expected to be in extreme difficulty by the nation’s Prime Minister, Mariano Rajoy. Luis de Guindos, Economy Minister believes that an outline is being prepared by Spain, as to how it will comply with European budget-deficit rules, after its borrowing costs reached the highest since December.