The deluge of bad news from Spain continues. Borrowing costs hit new highs, shares sink-and Mariano Rajoy's reformist government is dumbfounded. Why are the markets so cruel? One reason is that Spain's problems always turn out bigger than they seem. The cost of rescuing the country's fourth-biggest lender, Bankia, has spiralled over the past three weeks to some €23.5 billion ($29 billion, see page 73).
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