Rajoy Has Little Time to Savor Victory as Debt Crisis Flares
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Mariano Rajoy, who has become Spain’s prime minister after an eight-year wait, will have to act quickly as borrowing costs approach euro-era records and the country risks becoming the next victim of the region’s debt crisis.
Spain’s 10-year bond yield rose to 6.566 percent at 10:02 a.m. in Madrid from 6.379 percent on Nov. 18 after the People’s Party yesterday beat the ruling Socialists and their candidate Alfredo Perez Rubalcaba in a landslide, winning 186 seats in the 350 seat Parliament. The gap between Spanish and German borrowing costs widened to 465 basis points and the Ibex 35 stock index fell 1.9 percent.