via Kate
This would seem obvious. After all, Italy is on the hook for a chunk of the Spanish bailout and it means Italy will be lending Spain money at 3% that it – having no money in the Treasury and all – will be borrowing at 4%.
The Germans are, apparently, feeling a bit happier about a sinking fund solution where the debtors put up their gold as collateral and accept a super-tax administered by Germans to pay it down.
A solution more sensible than just – in the most literal sense of the metaphor – borrowing a deck chair to shuffle as the ship goes down.
Update: Nigel Farage puts a bit of stick about.
Jay Currie 
I love how — within hours of the Spailout — Ireland popped up to ask, “how come WE have austerity and THEY don’t?” The lack of austerity imposed on Spain has surely also been noticed in Greece and will not be well received during this weekend’s elections. Fun times.