Spain

Spain has put in place a public sector borrowing cap in an effort to tackle its debt burden, following calls from peers in Europe to take action.

My worst fears about the potential loss of confidence in our leaders, institutions, and capitalism itself are being realised. We have been digging this hole for a long time.

The Conjecture panel discusses debt, contagion, and the outlook for European markets

ON EUROPE

ON UK INCOME

The European Central Bank said last night it would "actively implement" its controversial bond-buying programme to fight the eurozone's debt crisis, signalling it will buy Spanish and Italian government bonds.

The European Central Bank (ECB) has voted to hold interest rates and will boost liquidity in the eurozone in an attempt to prevent the sovereign debt crisis from spreading to Italy and Spain.

Spanish and Italian government borrowing costs have hit eurozone-era highs as investors continue to worry over the state of their respective economies.

Invesco Perpetual remains positive on the prospects for the Spanish economy despite Moody's hinting it may downgrade the nation's credit rating this morning.

Moody's has placed Spain's Aa2 government bond rating on review for a potential downgrade over concerns the new bailout package for Greece will increase risks for bondholders.