The Spanish government is expected to announce plans to clean up its banking system.

It is likely to force the banks to set aside extra money, in the region of 30bn euros ($39bn; £24bn), to cover the cost of loans going bad.

Pedro Schwartz, professor of economics at San Pablo University in Madrid, told the Today programme that the Spanish government had "reacted late" to the banking crisis.

Spain's government is "running after the facts, rather than having a plan" to stabilise the economy, he said.

Megan Greene, senior economist at Roubini Global Economics, said that Spanish banks "will need much bigger recapitalisations" in the future, from EU and IMF funds.

But her analysis of the future of the Eurozone was not optimistic. When bailout money runs out - possibly at the end of 2014 - the economies of both Spain and Italy "will look even worse" because of austerity measures and will need to have their debts restructured.

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