Stalled rally puts pressure on Spain

Simon Tilford, chief economist at the CER, said the Spanish government was right to consider the bailout request with caution. "If one of the conditions is a further tightening of fiscal policy, then the risk is that that will depress the Spanish economy even further, and they won't be able to meet the terms of the bailout," he said. That in turn raises the risk the ECB would break off its bond purchases, potentially leaving Spain in an even worse situation, Mr. Tilford noted.