Osborne criticises Spain bailout

George Osborne has said the failure of the Spanish bank bailout is "depressing" as the banks had to be directly recapitalised into to convince the markets of its credibility. Spain's borrowing costs have hit the highest level for 13 years.

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Spanish bailout is a 'temporary solution' only

JP Morgan Global Strategist Tom Elliot says the Spanish bailout is a temporary solution that is "useful" but not long-term. Mr Elliot says the bailout has stopped a fully blown "systemic European banking collapse" that limits the risk of contagion.

Mr Elliot says the bailout is like "two drunks propping each other up": it is not sustainable and the collapse of one must be engineered.

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