FTSE falters as EU hands Spain breathing room with €30bn package

European stock markets have mirrored losses overnight in Asia and on Wall Street, despite the EU announcing it will hand Spanish banks €30bn of aid later this month.

Eurozone finance ministers have also agreed to give the Spanish government an extra year, to hit its budget targets, extending it to 2014. The Spanish government welcomed the bailout, stating it will enable the country to clean up its stricken banking system within 18 months. Spanish PM Mariano Rajoy also announced a harsh series of measures to repair the country's economy, including a 3% VAT rise, as he attempts to cut the country's public deficit by €65bn. However, European markets are subdued following the announcement, with fears over an anticipated slump in the US' second quar...