Greece's bailout has moreover been easily absorbed by the EU economy. The rescue proposed by Ireland this week is also predicted to be absorbed easily. Even if Portugal has to apply for a bailout, the size of the EU's economy will most likely ensure that a bailout would be possible.
However, the other country that is failing - Spain - is another problem all together.
Spain's economy is at least twice the size of any of the other three countries.
Luckily, Spain's government has done a good job of absorbing its deficit and their banks are mostly solid enough to take the bad loans. Spain's finance minister is also saying they will not need a bailout.
Spain's construction sector is in trouble.
The thing to be noted is that a huge part of the Spanish government's $271 billion debt is owed to the Spanish banks, and not to foreign banks or other economies. Although the Spanish economy is twice the size of other bailed out economies and reducing its debt might hamper the Spanish Banks' financial statements, Spain is relatively in good position compared to Greece, Ireland, or now Portugal.
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