The Buckingham

Photo Credit: www.zimbio.com

Amid Greece’s uncertain future in the Eurozone, an all-time high for unemployment, and a failing currency, European leaders are now scrambling to find an effective solution for Spain’s financial crisis.

In wake of this national emergency, Spanish Prime Minister Mariano Rajoy has requested the formation of a European banking union in which nations would  be guided by a central authority that would “re-capitalize lenders” and exert a “centralized” regulation of public finances. The union Rajoy is calling for would also involve “a deposit-guarantee fund.”

On the other hand, German Chancellor Angela Merkel maintains that she would not consent to “euro bonds.” Along with Finance Minister Wolfgang Schaeuble, Merkel has encouraged Spain to agree to the international bailout.

In regards to Spain’s decision-making, Merkel spokesperson Steffen Seibert issued a public statement that reads, “If aid is needed, everybody knows that Europe stands ready, that Europe shows solidarity and that Europe has aid instruments available. But the decision on that rests solely with the Spanish government.” Seibert even added that plans that “resemble euro bonds” may also be feasible.

According to Spanish newspaper El Pais, the European Union is also urging Spain “to accept funds.”

Deputy leader Spain’s ruling People’s Party, Maria Dolores de Cospedal, however, stated, “Spain is capable of getting out of this on its own.” Future plans for Spain include selling “bonds maturing in 2014, 2016 and 2022 on June 7.”

A meeting between Merkel, Rajoy, newly elected French President Francois Hollande, and Italian Prime Minister Mario Monti is set to take place in Rome on June 22.