Eurozone ministers meet today (July 9) and tomorrow July 10) in Brussels to add detail to the agreements made at the eurozone leaders’ summit in June. During the meeting they will be discussing the size of Spain’s bailout and the conditions of their loan (for banks and the Spanish government) and the implementation of Greece’s adjustment program. Spain and Italy have made it known that they want the agreements made at this summit to be implemented as soon as possible.
However, some northern European countries are resisting; Finland and the Netherlands have said they will not be rushed into taking responsibility for southern Europe’s fiscal mistakes. At the June summit leaders agreed to lend Spain’s banks up to 100 billion euros (US$123bn).
On Friday, July 6, the yield on Spain’s 10-year bonds rose above 7%, and Italian bonds rose to 6.1%. The yields are thought to be indicators of the interest rate to come on Spain and Italy borrowed money. A yield above 7% is considered unsustainable over the long term, news that only urges on the southern Europeans’ desire to have an answer as soon as possible.