Spain Calls Europe's Bluff as Crisis Eases CNBC.com. Europe's four-year old debt crisis seems to be in remission. Dutch voters backed pro-euro parties in Wednesday's poll, the German Constitutional Court gave the go-ahead for the region's permanent bailout fund and Draghi's latest bond program seems to be working, even before it's begun. Yields on Spanish and Italian bonds have fallen, the euro is at its strongest in four months against the dollar and European stocks are trading at their highest in almost a month.
The turnaround has been so dramatic that it's allowed Spain, one of the most badly affected countries, to suggest that it may not need aid after all.
"I don't know if Spain needs to ask for it," Rajoy told parliament on Wednesday, referring to external aid.
But according to Nicholas Spiro, managing director of Spiro Sovereign Strategy, even though the ECB bond plan is "working wonders", it won't prevent Spain from eventually seeking a bailout. “Many in the market are feeling that there is a 'Draghi Put' and the mastery of this plan is that it could work without spending a single cent, which is preposterous," he said on Thursday.
Spiro says there could be two immediate triggers, which could drive Spanish yields back up and force Spain to come seeking assistance. ... Continue to read.
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