1. Rescue

    Europe Offers to Bail Out Spain

    MADRID, SPAIN - MAY 29: The Spanish flag flies near a statue of Christopher Columbus on May 29, 2012 in Madrid, Spain. Spanish borrowing costs have increased after the government announced a rescue plan for Bankia involving more public debt.  (Photo by Denis Doyle/Getty Images)

    Denis Doyle, Getty Images

    After days of speculation, government officials in Spain announced Saturday that the country will seek a bailout, becoming the fourth European country to do so. Finance ministers for the 17 euro-zone countries spoke on Saturday to discuss plans to help Spain recapitalize its banks, and European finance officials offered as much as $125 billion (€100 billion) to help prevent the debt-crisis contagion from spreading even further. Politicians and financial experts in Spain and other countries that share the common currency have pushed for the country to act quickly to help stabilize the beleaguered euro zone before Greek elections on June 17. Meanwhile, Irish officials have begun clamoring for a renegotiation of the terms of its bailout to match those of Spain.

    Read it at The New York Times