ALL eyes are now on Spain's desperate attempts to avoid a fully fledged international bailout when the government puts up short-term debt for sale.
THERE are growing concerns that Spain will have to lean on the European Central Bank for a bailout.
Investors are reluctant to hold on to papers from eurozone countries but the costs Spain will be required to pay are hard to assess because of a combination of summer holidays.
Spanish bond yields have surged to new highs, despite hopes of a reprieve during the summer months.
Spain is prepared to auction as much as €3bn of 84- and 175-day bills.
The European Union is now facing its fourth and biggest sovereign bailout, after Greece, Portugal and Ireland.
Europe's governments are being urged to act because if they continue to stand aside, they will sink not only Greece, Italy and Spain, but the wider European and global economies as well.