Key week lies ahead for Spain within euro zone

German Chancellor Angela Merkel and Italian Prime Minister Mario Monti said on the 29 July 2012 that they will do 'everything possible to protect the eurozone'. The comments echoed remarks from French President Francois Hollande and European Central Bank (ECB) President Mario Draghi previously.

The comments increased speculation that the ECB could resume its programme of buying up Spanish bonds at a crucial time for Spain.

Spain faced a critical week in warding off the political anathema of having to follow Greece, Ireland and Portugal in asking for a full bailout from Europe.

• Primary Source

ESO: Background information: Spain pushed to the brink of full bailout http://www.europeansources.info/record/spain-pushed-to-the-brink-of-full-bailout/

BBC News, 29.7.12: 'Everything possible' to be done to protect the eurozone http://www.bbc.co.uk/news/business-19040494

EUObserver, 30.7.12: Euro-saving operations due within 'days,' says Juncker http://euobserver.com/24/117088

Spiegel Online International, 26.7.12: Euro Zone Weighing New Help for Spain http://www.spiegel.de/international/europe/efsf-rescue-fund-may-buy-spanish-bonds-to-cut-spanish-borrowing-costs-a-846510.html

Spiegel Online International, 30.7.12: Political Bankruptcy in Madrid Adds to Woes http://www.spiegel.de/international/europe/euro-crisis-series-spain-s-economic-arsonists-a-847121.html

El País, 31.7.12: Catalonia snubs meeting on regional finances http://elpais.com/elpais/2012/07/31/inenglish/1343760766_476372.html

El País, 31.7.12: Central government's deficit exceeds its target for entire year http://elpais.com/elpais/2012/07/31/inenglish/1343759330_981778.html

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