MADRID STRINGER

Bolivia nationalized the company that runs the three largest airports in Bolivia because the government claims the company did not invest in improving the airports.

2013-02-19T12:06:00.001Z

Servicios de Aeropuertos Bollivianos SA (Sabsa) is a division of Spain's Abertis Infraestructure SA but Sabsa is also partly owned by Aena Aeropuertos SA based in Madrid. Bolivian president Evo Morales said that the privatization of Sabsa in 1997 was equivalent to "robbery" and "looting". He claimed that since that time the company's profits have been exorbitant and investments "ridiculous".

real estate company Reyal Urbis filed for insolvency after failing to renegotiate debt with its creditors.

2013-02-19T11:51:00.001Z

Spain's property market crash claimed another victim on Tuesday, as real estate company Reyal Urbis filed for insolvency after failing to renegotiate debt with its creditors.

The move takes the property developer, which had 3.6 billion euros ($4.8 billion) of debt at the end of September, closer to becoming Spain's second-largest bankruptcy after Martinsa Fadesa, which defaulted on 7 billion euros of debt in 2008.

Dozens of property companies have collapsed in Spain, where house prices have fallen around 40 percent since their 2007 peak. With the country locked in a deep recession, analysts expect prices to fall further still.

Spain's banks were crippled by the property market bust, eventually requiring the state to agree a European bailout for its lenders of almost 40 billion euros last year. Indebted property firms have asked banks for debt relief but patience is wearing thin among lenders saddled with soured property assets.

Reyal Urbis is 70 percent owned by construction magnate Rafael Santamaria and its creditors include Santander, BBVA, Bankia and Banco Popular.

The company, which valued its property portfolio at 4.2 billion euros in June 2012, said it would continue to operate as permitted by Spanish insolvency laws.

Its insolvency petition now goes to court and its fate will be in the hands of a judge.

Reyal Urbis said Santamaria would remain at the helm of the company and he still hoped Reyal Urbis could reach a deal with its creditors, given "the good will of all negotiating parties".

The company had until Feb. 23 to reach a debt restructuring deal with the banks or file for insolvency. Sources close to the matter told Reuters on Friday that creditors had rejected the company's 3.6-billion-euro proposal.

Trading in the company's shares was suspended on Tuesday, Spain's stock market regulator said. The stock had plunged 99 percent since June 2007 to close at 0.124 euros on Monday.

At the end of 2011, Reyal Urbis owned some 888 finished homes in a country where over a million homes lie empty. The company also had 8 million square metres of land for development and 237,000 square metres of commercial property, including offices, shopping centres, industrial property and hotels.

2012-12-10T09:10:00.001Z

Emotional eating is when people use food as a way to deal with feelings instead of to satisfy hunger. We've all been there, finishing a whole bag of chips out of boredom or downing cookie after cookie while cramming for a big test. But when done a lot — especially without realizing it — emotional eating can affect weight, health, and overall well-being.

Not many of us make the connection between eating and our feelings. But understanding what drives emotional eating can help people take steps to change it.

One of the biggest myths about emotional eating is that it's prompted by negative feelings. Yes, people often turn to food when they're stressed out, lonely, sad, anxious, or bored. But emotional eating can be linked to positive feelings too, like the romance of sharing dessert on Valentine's Day or the celebration of a holiday feast.

Sometimes emotional eating is tied to major life events, like a death or a divorce. More often, though, it's the countless little daily stresses that cause someone to seek comfort or distraction in food.

Emotional eating patterns can be learned: A child who is given candy after a big achievement may grow up using candy as a reward for a job well done. A kid who is given cookies as a way to stop crying may learn to link cookies with comfort.

It's not easy to "unlearn" patterns of emotional eating. But it is possible. And it starts with an awareness of what's going on.

ARE YOU ADDICTED TO BUSYNESS ARE YOU A SOCIAL MEDIA ADDICT

2012-12-04T12:32:00.001Z

ARE YOU ADDICTED TO BUSYNESS ARE YOU A SOCIAL MEDIA ADDICT

You may be lost in the addiction to busyness if…

Your usual response to “how are you?” is “so busy”, “crazy busy” or “busy but good”
You spend time worrying about how busy you are going to be tomorrow
You get angry when your spouse or friends aren’t as busy as you
Your busy life keeps you up at night thinking about everything you didn’t get done
You make a point of letting people know that you stay at the office after hours
You check email several times a day
You zone out during conversations thinking about everything you have to do
You volunteer for things you don’t care about
You spend time complaining about how busy you are
You make list after list to make sure you don’t forget anything during your busy day
You allocate time each day to clean your desk or organize your stuff
You regularly eat in your car
You use a phone in the car because “it’s the only time you have to talk”

Police have several leads in the investigation of the large forest fire that started a week ago.

2012-09-08T15:13:00.001+01:00

Suspicions that it was started malicously has possibly strengthened. Sources claim that the fire spread quickly because there was more than one fire. Witnesses stated inter alia, have seen an unidentified jeep coming from a farm between Ojén and Marbella exactly where the fire then got an awesome course. In Marbella, it was announced yesterday that it is now able to restore electricity, water and telephone networks in all affected areas. It is now under the companies just the kind of disruption that is "normal". In areas Elviria Ricmar has repaired water pipes, power lines and 3000 meters telephone and fiber optic cable. It has also been launched several campaigns to restore nature and conduct tree plantings. Biologists say that tree planting may be necessary until next year. The hotel chain Fuerte Hoteles has among other things promised to donate a tree for every hotel guest you have in Marbella. The hotels have also started a fundraiser where guests can help by buying a tree, which will then be planted in the affected area.

experts believe we can actually become "addicted" to stress.

2012-09-07T06:40:00.001+01:00

Stress can be physical,And then there’s the kind that’s in our heads — that OMG I’m so overwhelmed right now feeling. While psychological stress has some definite downsides (chronic freak-outs may increase our risk for cancer and other diseases), take a moment to exhale. In moderate amounts, stress can boost our focus, energy, and even our powers of intuition.

Still, in some cases, stress does more than light a productivity-boosting fire under our butts. Both emotional and physical stress activate our central nervous system, causing a “natural high,” says Concordia University neuroscientist and addiction specialist Jim Pfaus. “By activating our arousal and attention systems,” Pfaus says, “stressors can also wake up the neural circuitry underlying wanting and craving — just like drugs do.”

This may be why, experts believe, some of us come to like stress a little too much.

Type A and Type D personalities — or people prone to competitiveness, anxiety, and depression — may be most likely to get a high from stressful situations, says stress management specialist Debbie Mandel. Stress “addicts,” Mandel says, “may also be using endless to-do lists to avoid less-easy-to-itemize problems — feelings of inadequacy, family conflicts, or other unresolved personal issues.”

Some stress junkies have difficulty listening to others, concentrating, and even sleeping because they can’t put tomorrow’s agenda out of their minds, explains Mandel. Others tend to use exaggerated vocabulary — craaazy busy right now, workload’s insane!! And some begin to feel anxious at the mere thought of slowing down their schedule.

But psychologist and addiction researcher Stanton Peele cautions against labeling anyone a stress addict. “Only when that pursuit of stress has a significant negative impact on your life could it qualify as addiction,” he said, adding that many people are able to effectively manage — and in fact thrive under — high stress conditions. (Think: Olympic athletes or President Obama.)

Study: Stress Shrinks the Brain and Lowers Our Ability to Cope with Adversity

For budding stress “addicts” or for those who just, well, feel overwhelmed, here are some tips to dial down that anxiety:

Seek professional help if you’re verging on burnout. (Not only can hashing it out with a therapist take a load off your mind. Some studies suggest it also boosts physical fitness.)
Do something creative. Mandel recommends carving out a once-weekly time not to think about tomorrow’s agenda by painting, cooking, writing, dancing, or anything else that’ll take you off the clock temporarily.
Take it outside. Numerous studies show spending time in nature improves general well-being, lowers anxiety, stress and depression, and even boosts self-confidence. Especially for women. (As it turns out, most addiction recovery centers offer outdoor-immersion programs.)
Calm down quickly. If you really don’t have time for any of the above, these 40 tricks to chill take five minutes or less.

Some of us may seek out stress a bit more excessively than others and struggle to just relax. It takes skill to handle hectic agendas and long lists of responsibilities — without losing sleep or feeling frazzled. So try these tips and try not to freak out.

Worried that you or someone you know seeks out stress a little too much? Think stress addiction is a myth? Tell us about it in the comments section below.

For those red wine drinkers who’ve been feeling morally superior about all the health benefits of the relaxing glass or two sipped during dinner, there’s some bad news on the horizon.

2012-09-07T06:31:00.001+01:00

Turns out, those glasses of wine would be a lot healthier if they were non-alcoholic, a new study shows. Spanish researchers led by Gemma Chiva-Blanch of the University of Barcelona found that non-alcoholic red wine reduced blood pressure in men at high risk for heart disease better than standard red wine or gin, according to the study published in the American Heart Association journal Circulation Research. Although the reduction in both systolic and diastolic blood pressure was modest, decreases of just 4 and 2 mm Hg have been associated with a 14 to 20 percent reduction in heart disease and stroke, the researchers pointed out. “The daily consumption of dealcoholized red wine could be useful for the prevention of low to moderate hypertension,” they concluded. Although there have been many studies on the impact of moderate drinking on health, the findings have been mixed, with some studies showing a benefit and others suggesting none. The new study found that 3 ounces of gin a day had no impact on blood pressure, while consumption of regular red wine led to a small, but not statistically significant, improvement. The new study suggests that if you’re going to have a drink, red wine would be the healthiest choice, said Dr. Kelly Anne Spratt, a heart disease prevention specialist and a clinical associate professor of medicine at the University of Pennsylvania. Still, Spratt said, “while there are those of us in cardiology who believe in the benefits of red wine, we want to be wary. We’re not going like gangbusters recommending people go out and start drinking. There are a lot of problems associated with drinking, like weight gain, cardiomyopathy, alcoholism, an increased breast cancer risk in women who consume two or more drinks a day.” Chiva-Blanch and her colleagues suspect that blood pressure improvements were due to the impact of polyphenols, a red wine component, on nitric oxide. The theory is that nitric oxide molecules help blood vessels relax, which allows better flow and more blood to reach the heart and other organs. For the new study, Chiva-Blanch and her colleagues followed 67 men with diabetes or three or more cardiovascular risk factors. During the study, the men were all required to consume the same foods along with one of three drinks: 10 ounces of red wine, 10 ounces of non-alcoholic red wine or 3 ounces of gin. During the 12 week study, the men tried each diet/beverage combination for four weeks at a time. The researchers determined that the standard red wine and its nonalcoholic counterpart contained equal amounts of polyphenols, an antioxidant which has been shown to decrease blood pressure. Men who drank regular red wine saw minor reductions in blood pressure – too small, in fact, to be statistically significant. Those who drank gin with their meals saw no change in blood pressure. But men who drank non-alcoholic red wine saw a blood pressure decrease of about 6 mm Hg in systolic and 2 mm Hg in diastolic blood pressure. Chiva-Blanch and her colleagues concluded that their findings show that the alcohol in red wine actually weakens its ability to lower blood pressure.

Griselda Blanco, gunned down in Medellin, Colombia Two armed riders pulled up to Blanco as she was leaving a butcher shop in her hometown

2012-09-04T16:34:00.001+01:00

Florida Department of Corrections

Griselda Blanco in 2004.

The convicted Colombian drug smuggler known as the “Godmother of Cocaine,” Griselda Blanco, 69, was gunned down by a motorcycle-riding assassin in Medellin, Colombian national police confirmed late Monday, according to the Miami Herald.

Blanco spent nearly 20 years in prison in the United States for drug trafficking and three murders before being deported to Colombia in 2004, the Herald reported.

Two armed riders pulled up to Blanco as she was leaving a butcher shop in her hometown, and one shot her twice in the head, the Herald reported, citing a report in El Colombiano newspaper.

Family members said Blanco had cut her ties to organized crime after returning to her country, the BBC reported. Police said they were investigating the motive.

Blanco was one of the first to engage in large-scale smuggling of cocaine into the United States from Colombia and set up many of the routes used by the Medellin cartel after she was sentenced in the United States in 1985, the BBC reported.

Investigators told the Herald that they estimate conservatively that Blanco was behind about 40 slayings. She was convicted in connection with three murders: Arranging the killing of two South Miami drug dealers who had not paid for a delivery, and ordering the assassination of a former enforcer for her organization, an operation that resulted in the death of the target’s 2-year-old son, the Herald reported.

Three of Blanco’s husbands were killed in violence related to drugs, the Herald reported, and one of her sons was named Michael Corleone, a reference to “The Godfather” movies.

Blanco is credited with originating motorcycle assassinations, the Herald reported.

“This is classic live-by-the-sword, die-by-the-sword,” filmmaker Billy Corben, who with Alfred Spellman made two “Cocaine Cowboys” documentaries, told the Herald. “Or in this case, live-by-the-motorcycle-assassin, die-by-the-motorcycle assassin.”

Marbella Forest Fire

2012-09-02T19:59:00.001+01:00

Estepona Wild Fires rage on a 2km front

2012-08-26T01:33:00.001+01:00

Police and Ambulances hurried to evacuate as wild fires quickly spread our reporter on the scene photographer the devastation

Estepona on Fire

2012-08-26T01:20:00.001+01:00

We had a tiny little fire today, which they put out.

Then an hour later, it restarted, and spread along 2 Klm of the coast.

It was horrible seeing old people being run out of their homes, and carried through the smoke by police and ambulances.

The pictures really doesn,t do show bad it really was.many houses have gone

During experiments on the axons of the Woods Hole squid (loligo pealei), we tested our cockroach leg stimulus protocol on the squid's chromatophores.

2012-08-25T12:00:00.001+01:00

The results were both interesting and beautiful. The video is a view through an 8x microscope zoomed in on the dorsal side of the caudal fin of the squid. We used a suction electrode to stimulate the fin nerve. Chromatophores are pigmeted cells that come in 3 colors: Brown, Red, and Yellow. Each chromatophore is lined with up to 16 muscles that contract to reveal their color.

Paloma T. Gonzalez-Bellido of Roger Hanlon's Lab in the Marine Resource Center of the Marine Biological Labs helped us with the preparation. You can read their latest paper at:http://rspb.royalsocietypublishing.org/content/early/2012/08/13/rspb.2012.1374

STAR WARS DETOURS™ Trailer

2012-08-25T11:43:00.001+01:00

Brad Pitt is reportedly utilising his free time to plan his wedding with Angelina Jolie.

2012-08-05T10:39:00.001+01:00

The 48-year-old has taken charge of preparations for the wedding that is expected to take place end of September. He has flown in a team of builders to renovate the home he shares with Jolie in southern France.

"Angelina isn`t so bothered about when they tie the knot, it`s Brad who is piling on the pressure," a website has quoted a source as saying.

"He wants the main house to be finished when the event takes place, even though the close friends and relatives who are invited aren`t the types to care. He wants everything to be absolutely perfect," the source added.

Paper Passion, a scent from Geza Schoen for Wallpaper magazine, makes its wearers smell like freshly printed books

2012-07-26T10:37:00.001+01:00

Paper Passion, a scent from Geza Schoen for Wallpaper* magazine, makes its wearers smell like freshly printed books. I suppose it can be alternated with "In the Library," a perfume that smells like old books.

Paper Passion fragrance by Geza Schoen, Gerhard Steidl, and Wallpaper* magazine, with packaging by Karl Lagerfeld and Steidl.
“The smell of a freshly printed book is the best smell in the world.” Karl Lagerfeld.

It comes packaged with inside a hollow carved out of a book with "texts" by "Karl Lagerfeld, Günter Grass, Geza Schoen and Tony Chambers."

It will cost two million € to connect the electricity, and nobody wants to pay.The empty Guadalhorce Hosptial in Cártama

2012-07-23T03:00:00.001+01:00

The Guadalhorce Hospital has been completed in Cártama on the Costa del Sol, but it has been empty for several months with no opening date planned.

To continue installing the equipment in the hospital it has to be accepted as meeting requirement, and to show that hospital is as planned, but for that to take place it must be connected to the electricity supply.

The problem is that will cost two million €, although the originally quoted price was 300,000 €, to install the electrical connection required. Endesa say the problem is that to supply the hospital an electrical substation at Villafranca del Guadalhorce will have to be expanded.

Cártama Town Hall has said they cannot meet the extra cost, which has put the budget up five fold. Mayor Jorge Gallardo says he thinks the electricity company is ‘making the most of the circumstances’.

However the Junta say they think the 2 million bill should be met by the Town Hall. They say the electricity contract was undertaken by Cártama Town Hall.

The Guadalhorce Hospital has been built thanks to an agreement between the Málaga Diputación, the Junta de Andalucía and the Cártama Town Hall, to give the district its long-wanted hospital. Many foreigners live in the inland area and have complained about the time to get to a hospital in Málaga.

Spain wildfires: Three killed

2012-07-23T01:23:00.001+01:00

Officials say the flames have been fanned by strong winds

Forest fires raging in Spain's north-eastern Catalonia region have left three people dead, officials say.

Two French nationals drowned in the sea close to the border with France while trying to escape the flames, Catalonia's interior minister said.

Strong winds gusting up to 90km/h (55mph) have rendered one fire "out of control", he said.

All residents of the county of Alt Emporda - about 135,000 people - have been ordered to stay indoors.

The area is a main link for holidaymakers travelling to and from southern France. Traffic on the cross-border AP-7 motorway was reported to have been severely disrupted on Sunday.

Cardiac arrest

The two French victims were among several people who were trapped by fire as they travelled along the N-260 main coastal road near the town of Portbou and tried to reach the sea by climbing down cliffs, according to Catalan Interior Minister Felip Puig.

The victims were a 60-year-old man and his 15-year-old daughter, Spanish media reported.

A 75-year-old man died after suffering a cardiac arrest in Llers, north-west of the area's main town, Figueres.

At least another 19 people have been wounded, including a French national who suffered burns on 80% of his body when he was caught in his car by the flames.

The fire near Portbou has been brought under control, according to media reports, while a much larger blaze further inland, around the border town of La Jonquera, was still spreading late on Sunday, Felip Puig said.

The fire, travelling at about 5-6km/h, came within 10km of Figueres, Mr Puig said.

A total of about 13,000 hectares (32,000 acres) of forest are estimated to have been devastated in the area, according to the authorities.

Diabetes drug makes brain cells grow

2012-07-06T05:51:00.001+01:00

The widely used diabetes drug metformin comes with a rather unexpected and alluring side effect: it encourages the growth of new neurons in the brain. The study reported in the July 6th issue of Cell Stem Cell, a Cell Press publication, also finds that those neural effects of the drug also make mice smarter. See Also: Health & Medicine Brain Tumor Stem Cells Nervous System Mind & Brain Brain Injury Intelligence Neuroscience Strange Science Reference Neural development Stem cell treatments Diabetes mellitus type 2 Embryonic stem cell The discovery is an important step toward therapies that aim to repair the brain not by introducing new stem cells but rather by spurring those that are already present into action, says the study's lead author Freda Miller of the University of Toronto-affiliated Hospital for Sick Children. The fact that it's a drug that is so widely used and so safe makes the news all that much better. Earlier work by Miller's team highlighted a pathway known as aPKC-CBP for its essential role in telling neural stem cells where and when to differentiate into mature neurons. As it happened, others had found before them that the same pathway is important for the metabolic effects of the drug metformin, but in liver cells. "We put two and two together," Miller says. If metformin activates the CBP pathway in the liver, they thought, maybe it could also do that in neural stem cells of the brain to encourage brain repair. The new evidence lends support to that promising idea in both mouse brains and human cells. Mice taking metformin not only showed an increase in the birth of new neurons, but they were also better able to learn the location of a hidden platform in a standard maze test of spatial learning. While it remains to be seen whether the very popular diabetes drug might already be serving as a brain booster for those who are now taking it, there are already some early hints that it may have cognitive benefits for people with Alzheimer's disease. It had been thought those improvements were the result of better diabetes control, Miller says, but it now appears that metformin may improve Alzheimer's symptoms by enhancing brain repair. Miller says they now hope to test whether metformin might help repair the brains of those who have suffered brain injury due to trauma or radiation therapies for cancer.

Spanish Tourism Industry Prepares for Difficult Summer

2012-07-05T21:12:00.001+01:00

Spain's tourism industry is bracing itself for a painful slowdown in bookings this summer, driven by a steep decline in local tourism, according to the country's leading hotel association. Reservations by Spanish vacationers for the month of July are 30% lower than last year, amid persistently high unemployment and a protracted economic recession, said Juan Molas, president of the Spanish Confederation of Hotels and Tourist Accommodations. An influx of visitors from Russia and other countries in Eastern Europe has compensated somewhat for the decline in local tourism, but weak local demand is expected to weigh on an industry that accounts for about 11% of Spain's annual economic output. Hotel owners are concerned that the government may raise the industry's value-added tax to 18% from the current 8%, in a bid to reduce its yawning budget deficit, making Spain less attractive to foreign tourists compared with other less expensive destinations "If the VAT rises to 18%, it will be absolutely catastrophic for the sector," Mr. Molas said at an event Thursday in Madrid. Spain's government is working to secure €100 billion ($126 billion) in aid for its struggling banking sector from the European Union and plans to meet with EU officials next week to discuss new measures to improve its public finances. Prime Minister Mariano Rajoy has already implemented €45 billion in austerity measures, but weak tax revenue threatens to undermine his administration's goal of trimming its shortfall this year to 5.3% of gross domestic product from 8.9% last year. Sentiment in the hospitality industry is at its lowest level since 2009, according to an index developed by the hotel association and consulting firm PwC. Based on a survey of hotel firms, 57% of operators expect international tourism will hold steady this year, while 76% expect domestic tourism to decline. "The parts of the country that will suffer the most are those that cater to national tourists," Mr. Molas said.

Entitled "Cock and Bull," this showpiece by British artist Damien Hirst towers above diners at Tramshed, which only serves chicken and steak.

2012-06-23T00:14:00.001+01:00

DAMIEN HIRST

Entitled "Cock and Bull," this showpiece by British artist Damien Hirst towers above diners at Tramshed, which only serves chicken and steak.

Internationally renowned British artist Damien Hirst has created an art piece for a London restaurant in which a whole Hereford cow and cockerel are preserved in formaldehyde in a steel and glass tank, smack dab in the middle of the dining room.

Called "Cock and Bull," the showpiece towers above diners at Tramshed which -- surprise -- serves only steak and whole roasted chicken.

Like a giant aquarium mounted on a TV stand, the art installation is an extension of Hirst's Natural History, a collection of preserved animals he's been creating since 1991 -- arguably his most famous series. Hirst also created a painting for the restaurant opening entitled "Beef and Chicken" which hangs on the mezzanine level and depicts the 1990s cartoon characters "Cow and Chicken."

In the basement level, the Cock ‘n' Bull gallery showcases a rotating art exhibit every six weeks. The first exhibition Quantum Jumping features art work themed around "jumping into a parallel dimension," and runs until July 1.

The classically British menu by chef and restaurateur Mark Hix, meanwhile, is conducive to family-style dining with whole roasted, free-range chickens or marbled sirloin steaks, both served with fries. Appetizers include Yorkshire pudding with whipped chicken livers, cauliflower salad, and smoked Cornish mackerel with beets and horseradish.

It's not unusual for restaurants to house the collections of famous and interesting artists, given the synergy between food and ambiance. Pierre Gagnaire's eponymous restaurant, in Paris, for instance, houses works from the Galerie Lelong, while Wolfgang Puck has also turned his restaurant space into an exhibit for a roster of rotating artists at his CUT steakhouse in Los Angeles.

Meanwhile, restaurants like Eric Ripert's Le Bernardin in New York, Jason Atherton's Pollen Street Social in London and Jean-Georges Vongerichten's Spice Market in London have been shortlisted in the Restaurant & Bar Design Awards this year.

Edward Burtynsky Photographs Farming in Monegros Spain

2012-06-22T14:45:00.001+01:00

Canadian photographer Edward Burtynsky is having a London moment. Not only are his familiar works on the oil crisis on view but he is also exhibiting a new series examining the impact of long-term farming in Monegros, Spain.

These photographs are looking at the tradition of dryland farming carried out over many generations in the north-eastern part of Spain. It's an agricultural region where the land is semi-arid, sparsely populated and prone to both droughts and high winds. The land is made up of sedimentary rock, gypsum, and clay-rich soil. The photographs show the impact of these conditions, as well as man's expanding foot print.

Burtynsky is shooting the photos from a helicopter, two thousand feet up: so high that there are almost no details to be identified. The topography looks like an abstract painting.

Despite a scarcity of water, generations of farmers have continued to farm, so the photos are a contrast between nature's untamed forces and man's attempts to harness it. The cracks and crevices form writhing lines with deep earthy tones.

EUROPEAN MINIMALISM was on display yet again this weekend.

2012-06-11T14:14:00.001+01:00

The world’s 12th biggest economy got a mini-bailout. Because the Spanish rescue package is so limited, it has the potential to fail within weeks.

But before considering the implications of the weekend’s developments for Spain and Europe, what does it mean for Ireland and the very vexed issue of debt taken on by the State to prop up the banking system?

Precisely nothing, is the short answer. The money to be lent to Spain will go straight on to the state’s balance sheet. There will be no Europeanisation of its bank debt. The belief that Spain’s crisis would be Ireland’s opportunity has been proved groundless.

If that is perfectly clear, the prospects of Spain’s mini-bailout working are much less so. Saturday’s package was designed to calm investor fears about its banks, thereby allowing the Spanish government to remain in the bond market so that it can fund itself in the normal way (the already bailed out trio of Ireland, Greece and Portugal remain shut out of the market and depend on handouts for all their spending needs).

The logic underpinning the Spanish rescue is that the markets are currently driven by irrational fear and that once this is quelled, all will be well. This could prove correct. When the €100 billion that Spain will have access to from Europe’s bailout funds is added to the approximately €750 billion its government already owes, it will still be less indebted than the euro zone average.

For the bloc as a whole, public debt stood at 87 per cent of gross domestic product (GDP) at the end of last year. In Spain, its ratio will go from just under 70 per cent of GDP to 80 per cent if all the €100 billion is used. That should be manageable.

It is in everyone’s interests that it proves to be so. Of the 17 countries in the euro zone, the Spanish economy is the fourth biggest after Germany, France and Italy. A full-scale bailout would drain the bloc’s rescue fund dry. If Saturday’s rescue fails, the euro zone will move yet another step closer to collapse.

The market reaction over the course of today will provide a good indication of what is in store for Spain and the euro. If yields (the effective interest rate) on Spanish government bonds do not fall significantly, the chances are that the country will, within weeks, be looking for multiples of the €100 billion it was pledged on Saturday.

While today marks the first hurdle for the Spanish rescue, next Monday could present a much bigger one. The Greek election on Sunday is a de facto referendum on remaining in the euro. If the Greeks fail to elect a government or vote into office an administration whose demands the rest of Europe will not accept, their ejection from the currency union will move centre stage. If the belief takes hold that any unravelling of the euro could take place, all the weaker countries will face increased pressure. That includes Spain, and Ireland too.

There are many other hurdles and pitfalls. Since the general financial crisis erupted four years ago, investors have feared not one but two unexploded fiscal bombs in Spain. The first, which has now gone off, was bigger bank losses. The second is bigger than admitted regional government debt.

Since the return to democracy in the 1970s, Spain has undergone the most radical decentralisation of any European country. The de facto federalisation of the country has, among other things, given the 17 regional governments huge spending powers. And Teutonic fiscal discipline has not always prevailed in regional capitals. Suspicions abound that piles of debt have been swept under carpets up and down the peninsula.

But even if regional governments do not generate the sort of negative surprises that the banks have served up, Spain – like Ireland – will escape the mire it is in only if its economy starts growing. That does not look like happening any time soon.

While most of the post-crash shake-out of the Irish economy appears to have taken place, Spain faces further wrenching downsizing. Despite property and construction bubbles that were not dissimilar in size to those of Ireland, the economic shock suffered by the Iberian economy has been considerably milder thus far.

By the two best measures of activity – GDP and domestic demand (the second measure excludes the export side of an economy) – the Irish economy has contracted by twice as much as Spain’s. Irish property prices have also fallen by twice as much.

Even the employment fiasco has been worse in Ireland. Although the rate of unemployment in Spain is much higher than Ireland’s (unemployment was never banished even at the height of the boom and few Spaniards have emigrated since the crash), fewer jobs have been lost there than here.

All of this, along with recent indicators and the predictions of most forecasters, suggest Spain is facing a deep recession. Should that happen, tax revenues will continue falling and public indebtedness will soar regardless of what happens to the banks. Spain’s prospects are finely balanced.

If the latest victim of the crisis is all but certain to suffer another bad recession, it appears it will be spared the indignity of having foreign technocrats come to Madrid regularly to poke their noses into its affairs and pass judgment on government actions.

The apparent avoidance of that humiliation is in part because the International Monetary Fund is not putting up a cent of the money. That body has strict procedures to follow when it lends to countries, including regular visits to capitals to check whether the conditions of its loans are being met.

The absence of IMF money and the much more limited scope of the Spanish mini-bailout explain the less intrusive surveillance than that endured by Ireland, Greece and Portugal. But it is hard not to suspect that the country’s size has meant preferential treatment. Grown-ups know that big countries will always have more clout in any club. But Spain’s bailout looks too much like an entirely different set of rules. If the EU were to go in that direction, questions would arise as to whether small countries’ interests would still be served by being in the EU club.

Spain hit by three-notch downgrade

2012-06-08T05:07:00.001+01:00

Spanish sovereign debt has been downgraded by three notches from A to BBB by Fitch Ratings, which said the likelihood of external financial support is rising. The agency cited what it called the recapitalisation needs of Spanish banks, which it put at around 60 billion euro (£48.6 billion), or even 100 billion euro (£80.9 billion) in a "high stress" scenario, a big increase in government debt if such a bailout does occur, continuing recession this year and in 2013, and a high level of foreign indebtedness that makes it very vulnerable to the crisis in Greece. Fitch also said Spain's financing difficulties will make it hard for it to intervene decisively in a banking sector restructuring and thus raise the likelihood of outside external help.

An International Monetary Fund report on Spanish banks will show the country's troubled lenders need a cash injection of at least 40 billion euros

2012-06-08T05:06:00.001+01:00

An International Monetary Fund report on Spanish banks will show the country's troubled lenders need a cash injection of at least 40 billion euros (32 billion pounds), sources in the financial sector said on Thursday. The report, due to be published next Monday, will also outline overall needs of 90 billion euros to clean up Spain's entire banking sector, with healthy banks covering a big chunk of this sum, one of the sources said."The capital shortfall for the Spanish banks will be around 40 billion euros after taking into account the capacity from some of the entities to cover expected losses with their own resources," the source told Reuters. Government sources declined to confirm the figures and one source who has been briefed on the matter cautioned that the IMF may not have finalised its estimates. The IMF report, along with an audit of the Spanish banking sector conducted by consulting firms Oliver Wyman and Roland Berger, will help determine the size of a bailout for Spanish lenders currently being explored in Madrid, Brussels and Berlin as a way to restore confidence in Spain and the euro zone. The country's borrowing costs have soared in recent weeks over concerns it would not be able to prop up banks hit by a property crash in 2008, and rein in its public finances.

Bank of England meets amid talk of £50bn stimulus

2012-06-07T08:28:00.001+01:00

Bank of England policymakers meet today to decide whether to change interest rates or to pump in more money into the ailing economy, with leading economist saying they may opt to inject a further £50bn of stimulus.