After Ireland was finally forced this week to ask for financial help from the European Union and International Monetary Fund, Barclays analysts now say it is possible that a similar fate could await Spain. In the first four months of 2011, the Spanish government and the country's banks must raise about €70bn (£59.2bn) in the bond market, which Barclays said would be a "big test for investor appetite", adding that it was concerned with the "execution risk".
"Our view is that the challenges facing Spain remain substantial – with the likelihood of a positive outcome poor until at least the sovereign and the banks have successfully navigated their way over the funding hump facing them both in Spring 2011," said the analysts.
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