Spain is failing to meet the budget goals it agreed to with the European Commission, which means it's going to be the next Euro zone member with bargain-priced stocks on the market.
[caption align="alignright" caption="Spanish blue chips BBVA and TEF are being gored by the debt crisis"]
According to the Wall Street Journal , the new Spanish prime minister says his government will prepare a 2012 budget that aims to reduce its deficit to 5.8% of gross domestic product, much higher than the 4.4% target his predecessor committed to.
The Spanish attributed the lapse to a deteriorating economic situation and a large 2011 budget overrun. Spain's 2011 budget deficit stood at 8.51% of GDP, compared to a target of 6%.
As a result of Spain's macroeconomic failure, Spanish blue chips have fallen greatly in price and will likely go even lower. Banco Bilbao Vizcaya Argentaria, SA ( BBVA , quote ) was down 1.10% over the last week of trading and is off 20.67% over the last 52 weeks. Telefonica, S.A ( TEF , quote ) was down 1.22% over the last week of trading and is off 26.33% for the last 52 weeks.
Spain's troubles could be an opportunity to buy. Traders with an eye for bargains should also keep in mind that the iShares MSCI Spain Index ETF ( EWP , quote ) is down 1.42% over the last week of trading and off by 18.41% for the last 52 weeks.