British financial authorities are drawing up emergency plans to cope with the fallout from the Spanish financial crisis

 

British financial authorities are drawing up emergency plans to cope with the fallout from the Spanish financial crisis as fears over Madrid’s ability to curb its debts grow this weekend. The Treasury, the Financial Services Authority the Bank of England have been discussing the risks to public confidence here posed by the strong financial links between Spain and Britain. Senior City figures feel certain that Britain’s banks are more than capable of dealing with a Spanish crisis. But the authorities are not ignoring the risk of public alarm, which is likely to be magnified as a result of the significant banking links with Spain, the large British expatriate community and the high level of British holiday property ownership, The Financial Mail on Sunday says.