It is possible that the mere existence of the ECB safety net is enough to maintain investor confidence, but Spain has some internal challenges: Madrid has little control over its (more fiscally irresponsible) semi-autonomous regions, its banks are in major trouble and its labor market needs urgent reform.
R. headache to deal with but also a serious loss of trust in the marketplace (BP shares have tumbled to almost half their value since April 21), an internal battle to restore employee confidence and all the fallout of the spill for those along the Gulf of Mexico.
There have been some positive developments over the last week: a new potential government in Italy, a new government in Greece -- both committed to applying the sort internal structural reform that can give markets more confidence.