The Corner

Contagio (2)

MADRID (Dow Jones)–Spanish Prime Minister Jose Luis Rodriguez Zapatero Tuesday postponed a scheduled vacation and Finance Minister Elena Salgado was in touch with several of her European counterparts as Spain’s risk premium hit a new historic high. Zapatero cancelled his vacation in order “to more closely follow” the country’s “economic indicators,” according to a statement from his office. A spokesman for the prime minister added that Zapatero was in close contact with Salgado, while the finance minister has been talking with her Italian, French and German counterparts. The spread between Spanish 10-year bonds and German bunds hit 400 basis points for the first time since the creation of the single currency, before Spanish bonds recovered slightly.

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