Spanish banks punished

"Europe punishes Spanish banks," headlines conservative Spanish daily ABC, following the eurozone summit in Brussels. Recapitalising Spanish banks, which is among the solutions found by eurozone leaders, should amount to €26 billion or "the most significant amount after [the capital needed for] Greece," the paper says. The sum represents a quarter of the total required for all the European banks currently in difficulty. In addition, the banks will have to revalue their sovereign bonds to their current value which is below their expected yield. The recapitalisation agreement, the paper says in a leader article, "opted for the worse formula: accepting a certain general devaluation of sovereign debt," which puts a burden on the banks' accounts.