Why Is Spain In Such A Financial Mess? Madrid Does Not Have The Power To Force The Regions To Do Its Bidding

Asking why Spain is in such a financial mess. The reason is that the centre does not have the power to force the 17 regions to do its bidding. The result is that economic news is getting worse by the day.

Mario Lopez writes from Madrid The reason why the national budget deficit is rising is because Madrid is bailing out failing regions. 

The deficit is ballooning and, at the present rate, will reach about 80 billion by December. Not surprising retail sales are down – 10 per cent in April compared to last year. Some retail sectors fell 15 per cent. Can it get worse?

Find out more about the BUDGET DEFICIT, What's what for EURO2012, how POLAND are figuring things out, the buzz about SPAIN meme and the UKRAINE contributions.