Fears regarding the potential re-emergence of the eurozone debt crisis have intensified after Spanish borrowing costs increased markedly.
During a round of bond sales across Europe yesterday (4 April), the embattled European nation only managed to sell around €2.6 billion ($3.4 billion) worth of debt - a figure some way below its target.
Furthermore, Spain's bonds maturing in 2020 yielded a higher-than-forecast 5.38 per cent, which also contributed to a growing feeling the Iberian country looks set to find it tough to meet its deficit objectives.
If this is the case and the nation is forced to seek a bailout, the eurozone as a whole is likely to suffer.
Luis de Guindos, Spanish economy minister, told Reuters the perception that the country's public accounts are "not sustainable" represents its "main risk" in the near future.
This comes after the Financial Times reported that several major European financiers are planning to pay back the money they borrowed from the European Central Bank this year.
By Asim Shah