Spain’s Banks Need 40 Billion Euro

Act now, leaders in Europe told Spain this week. The country is expected to ask for help recapitalizing its banks Saturday, and a Eurogroup conference call that lasted two and a half hours on Saturday ended with officials saying that a statement would come after the Spanish government had time to talk. Politicians and market watchers are afraid of what may happen if the debt-laden country delays, as elections in Greece scheduled to June 17 add to political and economic uncertainty in the euro zone. “There is a need to ensure that the euro area is properly ringfenced and protected from possible Greek fallout, and that means strengthening Spain’s banks,” one EU official told reporters.