The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A man performs for money in front of the pedestrians in Madrid, Sunday, March 3, 2013. Spain's Prime Minister Mariano Rajoy has conceded that the government just failed to reduce its budget deficit in 2012 to the level it promised European authorities. Rajoy said the deficit fell to 6.7 percent of the country's annual gross domestic product from 9 percent in 2011.
A man performs for money in front of the pedestrians in Madrid, Sunday, March 3, 2013. Spain's Prime Minister Mariano Rajoy has conceded that the government just failed to reduce its budget deficit in 2012 to the level it promised European authorities. Rajoy said the deficit fell to 6.7 percent of the country's annual gross domestic product from 9 percent in 2011.
(Andres Kudacki/AP)

BREAKINGVIEWS

Spain could be immune to Italian flu

Reuters Breakingviews delivers agenda-setting financial insight. Its global correspondents react to stories as they develop, delivering sharp and provocative commentary on big financial news as it breaks.

One knee-jerk reaction to Italy’s shock election was to worry about contagion to Spain. As Rome’s bond yields shot up last Tuesday, Madrid’s were dragged up in sympathy. These are the two troubled big beasts of the euro zone periphery and an explosion in either of them could destroy the single currency.