This rate of return is above the 7.0 percent danger level for long-term funding.
Rajoy recently announced massive spending cuts and other measures to save 65 billion euros to cut the country’s public deficit.
Spain is now in a catastrophic financial situation similar to that of Greece, Ireland and Portugal, which have been forced to seek international bailouts shortly after their bond-yields exceeded the seven percent threshold.
The EU member state has been struggling with its ailing economy since the country’s collapse into recession as the result of the global financial crisis roughly five years ago.
Various EU member states have been struggling with a deep economic stagnancy since the bloc’s financial crisis began about five years ago, forcing some of the most affected nations to adopt unbearable austerity measures to be eligible to get the EU bailouts