Europe's Crisis Spotlight Shifts to Spain

Spain is bigger, scarier, and harder to solve than Greece
Illustration by Topos Graphics

As Greece prepares for a June 17 election that may determine whether it exits the euro, the attention has shifted to Spain, where the problems are different—and much larger. Greece’s troubles stem from excessive government borrowing; Spain suffers from a property bust and its banks remain crippled by an estimated €184 billion ($230 billion) in troubled real estate assets. The government is struggling to devise a rescue plan as the country grapples with a deepening recession and 24 percent unemployment.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.