Investors have turned up the heat on Spain with borrowing costs rising to just under 7% on ten year bonds, the highest level since 1997.
Yields stood at 5.4% last month.
The increase comes as Spain prepares for national elections on Sunday.
Conservatives are favoured to regain office in a country with almost 5 million people out of work and debt at more than 60% of gross domestic product.
HSBC chief economist Stephen King says Europe's plans are crumbling, with Italy and then Spain feeling the falllout that started with Greece.
He says the question is what will trigger the European Cental Bank to step in, something it has so far steadfastly refused to do.
