Spain: Economic Pain To Deepen Despite Bank Rescue [VIDEO]

"This year is going to be a bad one." That's what Spain's prime minister is saying about his country's economy despite the likelihood of a $125 billion European bailout of Spain's banks.

Mariano Rajoy says will remain stuck in recession and unemployment, which is already close to 25 percent, will likely rise as the economy contracts. Spain is the fourth of the 17 countries the use the euro currency to seek a bailout. It's also the largest.

Meanwhile, Britain's Treasury chief says that uncertainty over the future of Europe's single currency is threatening to keep Britain from returning to economic growth. In an article published in the Sunday Telegraph George Osborne warns that Britain's attempt to pull itself out of recession "is being killed off by the crisis on our doorstep."

The 17-nation single currency bloc is Britain's single largest export market.

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