Spain Bank’s Bailout and Greece Elections

          This week issues are the country of Spain one hundred billion Euros bailout for the banks and this weekend Greece elections on June 17, 2012 will hold the global markets on edge. The recent Spanish government takeover of Bankia Bank on May 10, 2012 attempted to prevent collapse of another bank in Europe.  Greece and Spain are using austerity solve their debt crisis but they begin to realized that is not working. Spanish banks received financial assistance this week to prevent more problems in the financial system. Both countries continue to have high unemployment and continued protests about their government austerity polices.

          The markets are very concern about the one hundred billion Euros bank bailout is enough to prevent any more declines in the Spanish banking system. Meanwhile, the current Government of Spain is trying to prevent the same problems which the Italy and Greece previously receiving terms of financial assistance. Both countries lost their financial and political sovereignty to International Monetary Fund, European Central Bank, and The European Financial Stability Facility in order to receive funding for their financial systems. The Government of Spain realized this they are will to prevent the same downfall from Greece and Italy. Their hope is amount they received is enough to contain the banking crisis.

          Meanwhile, Greece elections will be held his weekend the global markets will wonder how the voters cast their ballots for parties who support austerity and renegotiation of Greece bailout financial terms for their debt. The current government has something very interesting any of the parties do not have a majortiy of seats to set up a government. The government is deadlock means nothing cannot be done to solve the debt problem. Meanwhile the public responded to unpopular austerity polices with public strikes, and riots. Some governments are beginning to realized that austerity polices do not works it just makes the economy weaker.

          Hopefully Greece and Spain economy will become better for the future. The members of the Euro currency realized their obligation to assist each other financially. Both counties need economic growth and increase revenues cover their current deficits. Nationalism is the enormous problem in Europe the centuries long frictions are the reasons for the lack assistance for other countries. In the next couple of days the country of Greece’s elections will decide their future choices are austerity, renegotiation of Greek debt, or leave the Euro currency. Also Spain is still face concerns about their banking system.