Yesterday we heard that the Spanish region of Catalonia has asked for a €5 billion bailout as the economy continues to struggle. Catalonia represents one fifth of the total Spanish economy and while earlier this year Madrid created a bailout fund the fact that Catalonia need funding urgently will put pressure on an already faltering economy so it will be interesting to see how the Spanish government and the rest of the European Central Bank (ECB) will deal with the problems. This news came on a day when it was confirmed that Spain had confirmed their economy had fallen by 1.3% in the second quarter of 2012 which has led to many claiming the whole of Spain will require a financial rescue package which again could heap more pressure on the rest of the Eurozone but possibly also the UK should we have to contribute to a bailout.

This news is likely to remain in the headlines for some time to come as Spain is one of the EU’s largest economies and the amount of money they are likely to need to prevent them failing is expected to be enormous and there is concern even that the single currency economy will not be able to afford the bailout which could have disasterous consequ