Distress calls from the Spanish Government

A Spanish flag flutters near the dome of the Bank of Spain in central Madrid. Photo: Reuters

Distress calls went out from the Spanish Government on Thursday night about the future of the Eurozone - after Spain's borrowing rates reached an alarming seven percent.

Spain's Foreign Minister, José Manuel García-Margallo, was quoted as saying the future of the whole European Union could be decided in the next few days or even hours.

He likened the crisis to the sinking of the Titanic and, in a clear warning to Germany, said even those in first class could go down.

From Madrid our Europe Editor, James Mates reports.