Description: As Greece prepares for a June 17 election that may determine whether it exits the euro, the attention has shifted to Spain, where the problems are differentâ€”and much larger. Greeceâ€™s troubles stem from excessive government borrowing; Spain suffers from a property bust and its banks remain crippled by an estimated â‚¬184 billion ($230 billion) in troubled real estate assets. The government is struggling to devise a rescue plan as the country grapples with a deepening recession and 24 percent unemployment.
Date: May 31, 2012
Questions for Discussions:
- What is the situation in Spain?
- How did it develop?
- What are the choices facing government and investors?