But Spain’s economic minister—Luis de Guindos—admonished investors to be cautious and not to become overly optimistic. He pointed to the Eurozone’s slow and complex decision-making process, a process that is continuing to inject uncertainty into global markets because of its seeming inability to address structural issues of distressed Eurozone countries.
Although borrowing costs remain high for the country, this week’s auctions brought yields much lower than last month’s. There is still fear among the country’s creditors that a bailout will be necessary. A notable development is the observation that each country—Spain, France, and Italy—are buying debt within its own borders with few foreign investors coming in.
The fear is that other countries could be lining up facing similar problems, increasing the amount of funds Europe will need to resolve its sovereign debt issues.

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