Spanish austerity is horrendous but very selective. The cosseted public sector is protected and the poor buggers in the private sector pay through the nose. The market sees through the EU kicking the can down the road. There will be more LTROs from the ECB to Euro banks on life support, money printing by another name.
Rates on Spanish and Italian debt jumped yesterday to 6% and have come back only slightly today under ECB massaging. It will go on like this with diminishing returns from each further dose of LTRO until reality sinks in that the Euro is finished.
Even in the Fatherland the penny is dropping. Yesterday BMW and Audi announced record increase in sales but this did not happen in the EU but in the BRICs especially China. The story that the EU is a dynamic expanding economy is now being exposed as a fairy tale kept going by unscrupulous self serving Europhiles.
Cameron's visits to the BRICs also gives the game away. He knows the EU is a busted flush.The UK is in a mess and there is no way out via the EU. The UK's future and destiny lies as it always has with open sea and the world outside Europe. The Europeans will continue to squabble as they have done for a thousand years.