Hard Decisions in Madrid
Thursday, October 11th, 2012
The Spanish Government is facing hard decisions in light of today’s action by credit agency Standard & Poor to cut the country’s rating. As the Spanish crisis deepens online forex traders need to evaluate Spain’s future in the Euro Zone.
For Spain’s politicians the hardest question is whether to ask for financial assistance to lower its borrowing costs. Applying for sovereign aid is perceived as an act of financial desperation and in recent months the Spanish Government has been keen to refute rumours that it was seeking such support. However in its report S&P linked the Spanish government’s unwillingness to seek aid with its decision to cut the country’s rating.
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