Here are the amounts of debt that the major Eurozone nations will need to issue this year. Let's put things in perspective. Spain's requirement for 2012 is to raise €35.5bn. With the new €100bn aid to the banking system, Spanish banks will have no trouble absorbing this debt. Even with higher haircut requirements due to the downgrades, Spain's banks will be able to finance a big portion of these bonds at the ECB.
Italy on the other hand will have a tougher time. At €120bn, the nation's requirement is the highest in the Eurozone. As Italy undergoes a severe recession and faces more auctions, the markets' attention will inevitably shift in that direction.
|Remaining 2012 government issuance by country (€ bn)|