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The main political parties of Greece have agreed that Greece should seek a better deal from Europe for its own rescue after Spain won such 'lenient' bailout terms.
Athens News is reporting that Syriza, set to become the main political party after the June 17 elections, said the Spanish deal proved that austerity imposed by international lenders had failed. Syriza spokesman Panos Skourletis said:
"Developments in Spain fully vindicate us in our reading of the crisis: this is a deep structural crisis of the eurozone itself. The discussions in Europe open new perspectives for Greece and the euro zone."
German Chancellor Angela Merkel was forced to defend the European rescue plan for Spain's indebted banks, as many German citizens are convinced their generosity is being abused.
Opinion polls show the German public are growing tired of their country's role as paymaster in the euro zone debt crisis.
Merkel's spokesman Steffan Seibert defended the bailout saying:
Eurozone member Cyprus has strongly hinted it may have to apply for an international bailout before the end of June.
Finance Minister Vassos Shiarly said: "The issue is urgent. We know the recapitalisation of the (island's) banks must be completed by June 30, and there are a few days left".
Cyprus is under growing pressure to apply for aid to salvage its second-largest lender Cyprus Popular Bank, bowed by its exposure to debt-crippled Greece.
European markets are expected to surge today after eurozone finance ministers agreed to lend Spain up to $125 billion to help its battered banks.
Financial spreadbetters predicted the following:
- Britain's FTSE 100 to open about 99 points higher, or 1.8 percent.
- Germany's DAX to jump 159-161 points, or as much as 2.6 percent.
- France's CAC-40 to climb 60 to 64 points, or as much as 2.1 percent.
But investors are expected to remain cautious with the focus set to shift to Greece's re-run election on June 17 which could determine whether the country stays or leaves the eurozone.
Shares, commodities and the battered euro jumped this morning after euro zone finance ministers agreed to lend Spain up to $125 billion to shore up its struggling banks, relieving markets that had feared for the country's fiscal collapse.
Hong Kong shares are set to jump 2.6 percent this morning following Chinese economic data released at the weekend that was not as bad as some had feared, as well as a bailout plan for Spain's banks, raising the appetite for risky assets.
The Hang Seng index was set to open 476.5 points higher at 18,978.88. The China Enteprises index of top locally listed firms was indicated to open up 2.7 percent.
Risk assets jumped this morning after euro zone finance ministers agreed on loans to help Spain's battered banks, easing fears Madrid's banking woes could escalate into a bankruptcy crisis and compound the currency bloc's troubles with Greece.
The euro jumped 1 percent to $1.2648, its highest since May 23, and the Australian dollar, closely linked to investors' risk appetite, gained about 0.9 percent to $1.0005 , its highest since May 15.
Spain's 100bn (£81bn) bank bail-out could backfire on Madrid by destabilising public finances and hampering the country's access to capital markets, according to the Telegraph.
Latest ITV News reports
George Osborne brands the Spanish bail-out as 'depressing' as the Government began paying more to borrow money than ever before.
Andreas Dombret, a board member of the Bundesbank, explains in a rare interview Germany's tough stance over euro crisis solutions.