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In 2008, the US and the world were on the brink of a world-wide economic meltdown.  What began as crisis in credit markets and a disaster in the housing markets, has spread like a wildfire to the rest of the world.

Countries in Europe, in an effort to compete in an ever changing global market, began to create a common market and currency.  Spain entered this European Union in 1986.  Since that time, Spain enjoyed rapid economic growth and the benefits of membership in the European Union. But, dark days have hit the European Union and many member countries are in serious financial trouble: Greece, Ireland and Spain.

Spain has been especially hard hit in the housing market and banks are left holding mortgages for homes, commercial developments and business assets in which they can neither dispose nor sell and do not have the same value as when they originally financed their purchase.  The people of Spain are enduring harsh austerity measures, changes in work environments and exploding unemployment rates.
All of these items have combined to bring Spain to the brink of needing to request a bailout of its entire economy by the European Union.  Although Spain may not need a full bailout, some emergency measures are most likely required by international lenders to rescue Spain's ailing economy.

The country has already instituted measures to help the economy such as an austerity focused budget, the auditing of its banks and a request from the European Central Bank for more financial assistance.Economist at HSBC said, "While expectations of a soft bailout for Spain helped calm market sentiment, the real side of the economy continues to deteriorate," "This only means that there is more pain to come next year."

Spain's unemployment figures show that 53% of their young people are unemployed and in 2013, the situation is expected to worsen due to government spending cuts due austerity plans and a downturn in the world trade cycle which would have an effect on their export market.

Most economists agree that a bailout for Spain is not a matter of if, but when.