Spain’s debt crisis was deeper...

Opposition to Spain’s bailout from Holland and Finland, continued German resistance to Eurobonds, the possibilities of fiscal union out of sight and arguments growing over who owns Spain’s debt are a signal that the recent EU summit has resolved nothing, senior economists told CNBC.

Banks, bailouts and bonds are top of the agenda in Europe this week as questions remain over who is liable for Spain’s 100 billion euro ($122.9 billion) debts — the banks benefiting from the bailout package or the government, and ultimately, the taxpayer.

Senior economists speaking to CNBC’s“Squawk Box Europe”, said that they also believed that Spain’s debt crisis was deeper and that they expected the Spanish state will need a bailout, as well as its banks.

European Central Bank Head, Mario Draghi, has said that the discussion about burden-sharing of European debt held by senior bond holders is “evolving” and there have been rumors that there might be a shift in the ECB’s position towards the seniority of bond holders.

However, who should take a loss, or “haircut, on their bondholdings, and when this should happen is undecided.



CNBC