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Spain Bank Governor Miguel Angel Fernandez Ordonez: "perspectives for a gradual recovery are surrounded by uncertainty."

Cost of borrowing country soared this year as investors worried that its deficit high - hangover property crisis which has not yet fully relax - could push the way of Greek and Irish debt crises, put a huge strain on bailout of EU resources.

"The prospects for a gradual recovery are surrounded by uncertainty," Bank of Spain Governor Miguel Angel Fernandez Ordonez said senators.

"In an environment where predictable financing conditions remain restrictive and that the public and the private sector have an urgent need to clean their financial situation, we can expect the pace of recovery in consumption of households to slow in the first half of the year," he said.

The difference between yields on 10-year bonds Spanish and German pink fundraising Tuesday to 223 highest basis points from a euro-ère top hit in June.

Economy and Treasury Secretaries Spain, two a Tuesday reiterated the commitment of the Government to reduce its deficit.

If the plan Spain aimed at reducing the deficit 6pc domestic product gross next year 11pc last year shows signs of being inaccessible, the country could become the next target market concerns about debt on the periphery of the euro area.

"We will have no problems to the Ireland if we carry out all the adjustments and reforms that we have done and those that we are such that the reform of pensions," the Treasury Carlos Ocana Secretary told journalists in the Senate.

Previously, he made a clear distinction between the Spanish banks and the Ireland saying that they "cannot be compared.

"It has its problems with the cajas (savings), but system has undergone a process of restructuring big," he said.

The Spain savings banks were exposed hugely bad debt accumulated during the boom of the property and now underwent a process of restructuring through government funding and a wave of mergers which reduces their number less than 20 45.

Portugal and the Spain are considered next nations most vulnerable to disturbance of the market after the rescue of the Greece and the Ireland.

The Spain is responsible for large concern EU because it represents the Ireland of economy of the euro area, unlike the Greece 10pc and Portugal, which account for less than 2pc each.

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