Daniel Pingarron

Spain seems condemned to pay for its own banking rescue after Germany flatly refused to let the eurozone's future bank supervisor do so, analysts say.

Spain fended off pressure Thursday for a full bailout to end its financial crisis, its economy minister insisting it did not need rescuing "at all".

Spain passed a key test of confidence Thursday when its borrowing costs mostly eased in a bond auction, but analysts warned Madrid not to dawdle before seeking a sovereign bailout.

A eurozone bailout for Spain's banks and a tough batch of pay cuts and tax hikes have not been enough to save the country from the risk of a full-blown bailout, analysts warn.

Spain's economic outlook darkened Friday as it warned its recession will drag on through 2013 and one of its indebted regions reached out for emergency aid from the cash-strapped government.

Tension over Spain's finances eased Tuesday as its borrowing rates fell after its latest tough deficit-cutting measures, with the markets looking ahead to a decisive eurozone call on rescuing its banks.

Even before Spain completed an agonising U-turn and secured a massive European rescue of its banks Saturday, analysts fretted over the risk of a far bigger bailout for the state itself.

Spanish Prime Minister Mariano Rajoy said Monday the state was struggling to borrow as its risk premium hit a euro-era record and fears spread over its stricken banks.

Spain's fourth-biggest bank Bankia said Saturday it was certain of securing the 19 billion euros ($24 billion) in state aid it is seeking in the largest bank bailout in the country's history.

The new president of Spain's fourth-biggest bank, Bankia, said Saturday he was confident of receiving from the government 19 billion euros ($24 billion) in the largest bank bailout in the country's history.

Spain's fourth-biggest bank, Bankia, has said it will ask the government for 19 billion euros ($24 billion) in the largest bank bailout in the country's history.

Spain's fourth-biggest bank, Bankia, said Friday it will ask the government for 19 billion euros ($24 billion) in the largest bank bailout in the country's history.

Spain's Bankia is in worse shape than previously thought as reports Friday said the struggling lender may seek up to 20 billion euros ($25 billion) from the state to stay afloat.

IMF head Christine Lagarde said Thursday that it would be able to boost its crisis intervention capacity this week as worries mounted that Spain might be the next eurozone country to seek a rescue.

Spain scraped through a key bond market test but failed to quash doubts over its future finances, analysts said Thursday after a Treasury bond sale beat money-raising targets.

For the leader of Spain's right, Mariano Rajoy, winning Sunday's elections may prove to be the easy part: now he has to win over the markets.

With their lower unemployment, increasing consumption and higher growth rates, Latin American nations are attracting investors looking for a refuge from the global financial turmoil, analysts say.

Spain's right romped towards a thumping victory in general elections Sunday, which would complete a clean-sweep rejection of governments in the crisis-torn eurozone nations.

Spain's right was storming towards a landslide win in a vote to be held Sunday, carried by popular anger over an economic slump and a debt crisis that has toppled a string of eurozone leaders.

The front-runner to be Spain's new prime minister, Mariano Rajoy, pleaded with markets to give Sunday's election winner "more than half an hour" to confront an economic crisis, as borrowing costs struck new records.