HispanicBusiness

Spanish Prime Minister Mariano Rajoy on Wednesday called on the European Union to launch a "clear and forceful" message in defence of the euro as the interest rate on Spanish 10-year bonds hit a new record high.

Spain's situation was "very complicated" because of its high borrowing costs, Rajoy told journalists. However, the government is enacting the right measures, he insisted.

The EU, therefore, needs to send a message in defence of the euro and of the sustainability of the public debts of all eurozone countries, he said.

The rate on Spanish 10-year bonds rose to 6.5 per cent, from 6.3 per cent on Tuesday, increasing their spread on benchmark German bonds, which are currently trading at around 1.4 per cent.

Analysts attributed the rise to concern about the financial situation in Greece following an announcement that new elections will be held there.

The Ibex 35, the main index of the Madrid stock exchange, dropped by 1.7 per cent shortly after the start of trading.