Spain Passes New Stress Test

A bit of good economic news for Spain on the heels of turmoil in Madrid earlier this week: according to a new stress test, the country’s banks need €53.75 billion in new capital—less than a €62 billion previous estimate—to survive the economic downturn. The European Commission welcomed the results of the commissioned tests, calling them “a major step” in restoring confidence in the country’s banking sector. The stress-test figure will serve as a benchmark to calculate how much Spain will need to dig into the €100 billion credit line obtained from the European Union.