BERLIN—The euro zone's sovereign debt crisis escalated Friday as the
market homed in on Spain as another potential weak spot, leaving
officials scrambling to quell investors' fears.
Spanish Prime Minister Jose Luis Rodriguez Zapatero moved to dispel
the growing anxiety surrounding the country's fiscal position Friday,
saying there was "absolutely" no chance the euro zone's fourth-largest
economy would seek a bailout from the European Union. But his attempt to
calm the markets had little effect, with the euro tumbling and the
selloff in Spanish and Portuguese sovereign bonds continuing.