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Page last updated at 07:33 GMT, Friday, 18 May 2012 08:33 UK

Could Spain leave the euro?

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The euro crisis spotlight has turned on Spain with the bank downgrade by a credit rating agency and unemployment at a record high.

Justin Webb has been taking the temperature on the streets of Madrid.

Pablo Triana, professor at the ESADE business school, says that if people start to believe that a new peseta is "not a hallucination" they will start withdrawing their money from Spanish banks.

"The biggest potential impact on Spain is the human impact", he explains, because of the "popularity of the eurozone in Spain".

Gail Allard, economics teacher at the IE business school, says the psychological impact would be "devastating" if Spain left the Euro.

The Spaniards were very proud to enter the Euro, she adds, and "to shake-up that up would put cracks in the project that are very hard to repair".


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