Spain resists full bailout as cost of debt hits new high

Spain continued to fiercely resist looking for a full bailout despite having to pay a euro-era high for short-term debt.

The Spanish government have failed to convince Germany and the rest of the eurozone countries to decouple lending for banks from the state under the terms of the ESM, the new bailout mechanism due to come into force on Jul 9.

But they are pushing to change the nature of the loan from having preferential status over borrowings from the market. Eurozone finance ministers approved up to €100bn for Spanish banks last week, but which Spain has not yet officially asked for.