Catalonia taps Spanish govt for €5bn bailout as recession worsens

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The Spanish region of Catalonia has asked the central government for a €5bn pay-out to help the struggling region, amid the country's latest GDP data showing it is in a deeper recession than feared.

Catalonia - home to cities including Barcelona - is seeking aid from an €18bn public fund set up this summer to support the country's 17 autonomous debt-riddled regions. The news is particularly damaging for Spain as Catalonia represents one fifth of the Spanish economy. Spanish bond yields jumped in response this afternoon, climbing 0.8% to 6.46%, as investors one again reacted to the possibility Spain will be forced to seek a full-blown bailout. Meanwhile, official figures released from the Instituto Nacional de Estadistic today showed Spain's economy had contracted for a third c...

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