The Real Threat From Spain’s Corruption Scandal

Feb. 7 (Bloomberg) -- Investors worried about Spain’spolitical stability have been dumping their Spanish holdings andpushing up the country’s borrowing costs after the eruption latelast week of a corruption scandal involving Prime MinisterMariano Rajoy.

Until now, the government’s durability had been one of thefew advantages that Spain held over fellow euro-area problem-case Italy, a country that has seen almost as many elections asChristmases over the past few decades and is about to stageanother.