In terms of the country's territorial integrity all eyes are now focused on the Catalonia elections on 25 November. Although how a region which has beggars like the one above thinks it can do better out of Madrid's orbit beats me. (I took this photo in Barcelona a few years ago).
An even more serious question is how can the Spanish trust any agreements they make with the AAA countries? Back in June they were told that the holes in the financial accounts of Spanish banks need not appear on the Country's balance sheet. I couldn't believe that this had been agreed at the time, particularly by the Germans who through various help-funds set up in the Euro-area would have been the people likely left with the tab.
It has become clear to anyone who follows the shenanigans of the Eurozone closely that the Euro clique will do absolutely anything to ensure that they get a balmy summer holiday in August. Last summer it was all about 'Merkozy' (the great Franco-German axis personified) saving the Euro and their whole plan fell apart even before the end of August 2011. This year is even worse. The triple A countries have blatantly gone back on what they allowed to be stated as their positions last June with respect to Spain and others. Perhaps they had a rethink while lying on the beach or, more likely, just knew that they weren't going to do what they agreed from the start. In any case, the markets have noted this and will cause great problems for the leading countries of the Eurozone the next time they come up with a supposedly 'generous' solution for the indebted countries.
I have marked this blog post for particular attention next June and July when I suspect that the same Euro-decision makers will try once again to set themselves for a quiet August with more 'suspect' plans. Of course, this assumes the Eurozone is still intact by then!