Eurozone finance ministers released the promised €30 billion of the total €100 billion it committed to help Spain’s sovereign debt issues. The funds were released along with a reemphasis on the need for Spain to bring its debt levels within agreed-upon Eurozone parameters in order to receive the rest of the promised funding.
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The two are said to be inextricably linked. Spain’s finance minister said the country’s economy
will contract as a result of the forced austerity measures. Original projections were for a contraction of .2% in 2013. Now, they are expected to be deeper at .5%.
Growth for 2014 has also been revised downward to 1.2% from a former projection of 1.4%. Spain may end up being a poster child for the Eurozone in applying the new approach to resolving its debt crisis that resulted from the European Summit on June 28 and 29.