Spain's problems 'come from abroad'

The European Commission threw Spain two potential life lines on Wednesday, offering more time to reduce its budget deficit and direct aid from a eurozone rescue fund to recapitalise distressed banks.

The Madrid stock market hit a nine-year low as Spanish borrowing costs flew higher.

Jose Carlos Diez, a financial analyst, said "Since 2010 the main points of tension in Spain mostly come from abroad, mainly from Greece, but they don't affect France or Holland, so Spain has an idiosyncratic risk."

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