The announcement by the heavily indebted eastern region of Valencia on Friday that it would need help from Madrid spooked financial markets and complicated central government efforts to stave off a full-blown sovereign bailout.
The funding will help the regions deal with their borrowings – but it comes with strict fiscal conditions. Catalonia, Castilla-La Mancha, the Canaries, the Balearics and Andalucia are also likely candidates for the mechanism.
Contextual targeting label:
Finance
