"We don't care how they do it, but we need to make payments at the end of the month. Your economy can't recover if you can't pay your bills," said Catalan President Artur Mas. The debt burden of Spain's 17 highly devolved regions and toxic property debt held by the country's banks are at the heart of the eurozone debt crisis because investors fear they could strain finances to the point that an international bailout is needed. Just after the announcement this afternoon Spain's IBEX stock market fell 1.1pc, the yield on ten-year Spanish debt rose to 6.24pc and the euro slumped to its lowest level against the US dollar in two years, $1.2496. Catalonia, which represents one fifth of the Spanish economy, has more than €13bn in debt to refinance this year, as well as its deficit. All of the regions together have €36bn to refinance this year, as well as an authorised deficit of €15bn.
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