Spain

EURO 2012

Global equity markets have posted sharp gains as investors shrug off a lack of action from the European Central Bank and look to developments in Spain and monetary policy moves elsewhere.

The European Commission is considering offering Spain direct aid from the eurozone rescue fund to recapitalise distressed banks, as the country's government bond yields approach record highs.

Spain has seen its plan to recapitalise stricken Bankia by indirectly asking the ECB for cash rejected by the ECB, the FT reports.

SPAIN

Spain's borrowing costs have hit a high not seen since last November on news the government has approached the European Central Bank for help bailing out Bankia.

Spain's market regulator has suspended trading in Bankia shares ahead of a crunch meeting where the lender is expected to ask the government for around €15bn to stay afloat.

The FTSE 100 has dropped more than 1% as the Spanish banking crisis intensified, with shares in bailed out Bankia shedding 25% today alone.

Neptune's Rob Burnett has outlined three potential positives for the eurozone as the region struggles through the latest phase of its debt crisis.

As the eurozone crisis continues to batter markets today, we highlight the five key challenges facing the continent.