Spain in the 16th and 17th Century were renown both for their conquests of the Americas and also as serial defaulters. The decline of Spain spawned the rise of the Dutch. Presently, the sovereign debt crisis in Europe will cement the depression in the region that began in 2008.
"Charles V had left Philip with a debt of about 36 million ducats and an annual deficit of 1 million ducats. This debt was caused by Phillip II defaulting on loans in 1557, 1560, 1575, and 1596. This happened because the lenders had no power of the king and could not force him to repay his loans. These defaults were just the beginning of Spain's economic troubles as Spain's kings would default 6 more times in the next 65 years.[6] Aside from reducing state revenues for overseas expeditions, the domestic policies of Philip II further burdened Spain, and would, in the following century, contribute to its decline, as maintained by some historians.[7]"
Source:
http://en.wikipedia.org/wiki/Philip_II_of_Spain
PARIS — Europe is ready to help Spain if it needs to rescue its banks, Pierre Moscovici, the French finance minister, said Wednesday, but a top Spanish official said there were currently no plans to seek a bailout.
“If Spain desires, we in the euro zone can mobilize rapidly,” Mr. Moscovici said at a press conference in Paris.
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http://www.nytimes.com/2...ro-zone-watch.html?_r=1