The European Commission yesterday/ on Wednesday approved a 4.5 billion euro package for Spain and a 19 billion euro guarantee from Madrid for troubled Bankia’s subsidiary of Spanish BFA group. Eurozone finance ministers have okayed a loan of up to 100 billion euro for the Spanish Government to lighten its banks’ burden of bad loans caused by the impacts of real estate speculation bubbles.

Spanish Prime Minister Mariano Rajoy (Photo: Internet)

Ahead of the European Union Summit, Spanish Prime Minister Mariano Rajoy yesterday warned that Madrid can not afford a sustained financial burden at current market high interest rates. Rajoy added that if this Eurozone’s fourth biggest economy loses its ability to pay back the debt, the bailout package for Spain will be much greater than that for Greece or Ireland, which may leave unpredictable consequences for the Eurozone.