The full bailout for Spain is being profiled as an unavoidable eventuality according to speculation from the international press and analysts. Most agree that it is only a matter of time.

As Spanish President Mariano Rajoy and Italian Prime Minister Mario Monti meet in Rome, they may discuss at what point they are willing to succumb to pressure and officially request international assistance. What can almost be said for certain is that Spain's Council of Ministers will present a new package of economic reforms that abide by talks at last week's Eurogroup meeting.

Spanish Finance Minister, Luis de Guindos, did not want to tie the new reforms to a future bailout programme but the relationship seems clear. It appears that the government will present the measures and then request a bailout conditioned by those commitments. Some call this a "soft bailout" because the conditions are already on the table.

Some sources say that the measure includes a pension freeze and an increase to the retirement age to 67. This would allow Spain to save at least 4 billion euros a year.

MG

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