The European Commission offered Spain an extra year to reduce its budget deficit so long as certain conditions are met. EU Commissioner Olli Rehn said Brussels was willing to give Spain until 2014 to bring their deficit down to the EU limit of 3 percent of GDP if Madrid presented a solid two-year budget plan for 2013- 2014. Through this concession, Spain is being asked to rein in the overspending of its regions and make sweeping financial reforms to help its severely crippled banks. 

While also troubled, Italy was not given this concession since its economy is forecast to grow within the next year. Greece's largest bank, The National Bank of Greece, said the country will be facing an economic catastrophe if they decide to leave the Euro after their second general election. 

 

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