The pain in Spain will continue to reign

Newton & BNY Mellon's Paul Brain has spoken out on the potential impact this latest aid package will have on the rest of the Eurozone. He starts by questioning where the €100bn is coming from. "The money will come from either the European Financial Stability Facility (EFSF) or its successor, the European Stability Mechanism (ESM), which comes into force in July - although the exact source of the funds (EFSF or ESM) has quite significant ramifications for the make-up of the bailout. If it came from the ESM, existing and future private holders of Spanish government debt would rank behind E...