Germany's credit rating warning

Germany and the Netherlands have been put on negative ratings watch by Moody's. It is after increased fears about Spain's economy sent markets tumbling after news that the country was pushed deeper into recession and a step closer to a formal bailout

Latest ITV News reports

Britain cannot afford for Spain's economy to worsen

by - Former Business Editor

The scale of Spain's economic slump suggests the country is inching ever closer to a full-scale bailout.

There are real doubts about whether or not the Eurozone could actually afford to bail out Spain and what the knock-on consequences for other Eurozone countries would be.

This matters so much to Britain because half of all the business done in this country is done with the Eurozone.

With our economy also shrinking, we can't afford for things to get much worse in Spain.

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Spanish economic woes paint 'grim picture' for Europe

by - Former Business Editor

Spain's economy is shrinking faster than previously thought.

They're having to pay more than ever, more than 7.5%, to borrow from the markets to be able to pay benefits and pensions etc. - more than five times the rate that the UK has to pay to borrow.

The consequence is that the Spanish government is having real problems making ends meet.

Spanish regional governments are now putting up their hands saying, "we are running out of cash, and you need to help us."

It paints a very grim picture that this morning's markets slump suggests is going on.

Spanish bailout fears hit markets

Increased fears about the Spanish economy have sent markets tumbling.

The euro slid to a two-year low against the dollar today as concerns build that Spain will have to seek a full sovereign bailout.

The beleaguered country's stock market regulator, meanwhile, banned short-selling on all Spanish securities for three months.

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