Here is something interesting from the G-20 meeting:
“In this context, we welcome Spain’s plan to recapitalize its banking system and the Eurogroup’s announcement of support for Spain’s financial restructuring authority. The adoption of the Fiscal Compact and its ongoing implementation, together with growth-enhancing policies and structural reform and financial stability measures, are important steps towards greater fiscal and economic integration that lead to sustainable borrowing costs.”
The G-20 and Eurozone support Spain pulling down euros from the ESM (European Stability Mechanism). Yes, the ESM was designed to be part of the long term solution to the crisis, but it’s also been long in the making and not even approved yet.
Calling this out in the G-20 document tells the world we’re going to see more of this for Spain, Italy, Ireland and the rest in the near term future, and it’s going to happen sooner rather than later.