Friday morning, the Spread between the Germany and Spain government bonds widened to an all new record-high of 546 basis points. The markets keep on punishing the already troubled Spain as the yield on the Spanish ten year bond has reached to 6.63%.
The European Union critized Prime Minister Rajoy’s administration’s financial reforms yesterday, EU said that the reform is not ambitious enough and it is also not going to be effective to resolve its current debt crisis.
Spains reforms for public administration, financial regulation and competitiveness was less than expected, according to the European Commision. It also states its dissappointment with the current administration’s labor reform, which brings in higher public debt level and short term contracts.