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FXstreet.com (Barcelona) - Adrian Foster, Analyst at Rabobank writes about the bailout to the spanish banks. "There was discussion of whether bail-out funds could be made directly available to Spanish banks, by-passing the Spanish government (because it already has a large deficit). But this was knocked-on the head, so to speak." According to the analyst: "The German Chancellor, Merkel, was quoted saying 'Contracts are made among countries, not banks... If I am giving money to Spanish banks... I am the German chancellor but I cannot say what these banks can do". "Therein lies the fundamental reason the euro crisis still rages after two and a half years. Those with the financial ability to offer support are not in a position to control their funds once they're made available to others. There's an understandable reluctance to go signing blank cheques for others to spend as they see fit." He concludes.

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