EU to bail out Spain
Tuesday, July 10, 2012 11:00 AM
The European Union will give 100 billion euros, or about $123 billion, to struggling Spain to keep the nation out of the European debt crisis.
Finance ministers from nine countries met in Brussels on Monday and announced they would make 30 billion euros available for Spain by the end of the month.
"The fundamental issue is that Spain's spending more a year than they're taking in," said Bob Phillips, co-founder of Spectrum Management Group, in an interview with CNNMoney. "They can print money and buy time, but they keep spending money that can't be paid for."
The U.S. stock market reacted positively in early morning trading to the announcement. The Dow Jones industrial average gained 64 points.
Finance ministers also approved a plan to extend the time Spain has to reduce its deficit to 2014, according to Reuters.