As Spain battles to get its banks back into the black, the country’s government is appealing for calm.
Madrid has had its sovereign debt rating cut by the Moody’s agency to just above junk status and the cost of borrowing has reached another euro-era record.
“We are living in a situation of tension and volatility. It is a complicated week, ahead of the Greek elections,” said Luis de Guindos, Spanish Economy Minister.
“The government is obviously aware of the situation but it also wants to send a message of calm, under these circumstances. A message which we know all of our partners in the monetary union support.”
News of the rating cut is dominating the newspaper front pages in Spain. Some of those digesting the developments feel like they are being ignored.
“I don’t think there’s any solution to this situation at the moment,” said one woman in Madrid. “Let’s hope it will be solved in the future, but I think they are doing whatever they want without taking us into account. We are just numbers.”
Another resident added: “Our country is in a bad state, but the power of the rating agencies is really shameful.”
Meanwhile, Spain’s ‘indignados’ protest movement has announced that it has filed a complaint against the former leadership of Bankia, which was recently nationalised.
They want officials jailed for what they describe as “false accounting” and the release of “fraudulent information.”