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Spain asks for $125 billion bail-out
Spain on Saturday became the fourth eurozone country to ask for a bailout as the continent's debt crisis continues to take a toll.
The $125 billion request from Europe's fifth-largest economy is almost guaranteed to play into U.S. presidential politics as the crisis slows growth around the world and both parties squabble over the right remedy. European nations and the International Monetary Fund – which gets almost 18 percent of its annual budget from the U.S. –have already pledged $480 billion to Greece, Ireland and Portugal.
“The Spanish government declares its intention of seeking European financing for the recapitalization of the Spanish banks that need it,” Spanish Economy Minister Luis de Guindos told reporters in Madrid on Saturday, according to Bloomberg.
“When it comes to the economy, I think it’s also important that we keep in mind the debt, and the impact it has on growth,” Rep. Cathy McMorris Rodgers (R-Wash.), Mitt Romney's top surrogate in the House of Representatives, said at a leadership press conference last month. “If you want to see the consequences of President Obama’s record debt on this country, all you have to do is look at what is happening now in Greece, as well as the rest of Europe.”
The administration for its part has dispatched a number of officials, including the Treasury Department's under-secretary for international affairs Lael Brainard, to press Germany to back off its calls for greater austerity and start pumping money into the economy.
