Spain is facing an economic situation of extreme difficulty, I repeat, of extreme difficulty, and anyone who doesn't understand that is fooling themselves.
Sentiment: NEGATIVE
Spain is finding it very difficult to finance itself with sovereign debt risk premium so high.
The worst thing a government can do now in Spain is to do nothing.
On any measure, Spain's bank rescue has been a disaster. A hundred million euros have been added to the national debt, ten-year bonds are at a record high and the country's credit rating has been downgraded three notches.
The difficulty in a number of Western democracies is that the playing field is being tilted. For many in the middle class, prosperity seems unattainable because a good education - today's passport to riches - is unaffordable.
There is a growing frustration that the EU is seen as something that is done to people rather than acting on their behalf. And this is being intensified by the very solutions required to resolve the economic problems.
When your economy is subject to the whims of Libya and Nigeria and Venezuela, you have a problem.
And still the time, especially in the economy, is very tough, very difficult. It's necessary to be active still, to work, to fight, to make our economy more competitive.
There are countries that are near ours which are in the situation which we all know. I want to say that this is not the case of Spain now and it will not be in the future.
It is no secret to anyone that we are going to rule in the most delicate circumstances Spain has faced in 30 years.
There are several silver linings on the horizon. The current account deficits in Spain and Portugal are declining because they have become more competitive and they're exporting more.