The Spanish government's weekend decision to request up to EUR100 billion in European Union aid for the country's banks should help reduce the danger of contagion. "The market has been waiting for Spain to ask for help for some time now. By asking for help, it should at least stop the issue spreading to other countries," says Wee-Khoon Chong, Asia rates strategist at Societe Generale in Hong Kong. Still, Spanish Prime Minister Mariano Rajoy warned of the significant challenges ahead, saying that the potential bank bailout won't prevent the country from staying mired in recession or stop more people from losing their jobs. Other analysts were also circumspect about the news; "the agreement won't solve the debt concerns completely because the question remains how and who will give money to Spain and of course the Greek election next week," says Yuji Saito, director of foreign exchange at Credit Agricole Bank in Tokyo; the EUR/USD is at 1.2638.
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