Spain: Too big to save, but too big to fail?

Spain takes a giant step towards a full-blown constitutional crisis as Catalans overwhelmingly elect candidates promising a break-up vote. Catalonia has delivered a sweeping mandate to political parties pledging to hold a referendum on independence in elections that place the northern Spanish region on a collision course with Madrid.

Votes were being counted Friday in Ireland's referendum on a key EU pact designed to shore up the eurozone, with opinion polls putting the "yes" camp ahead but low turnout suggesting the result may be close.Ireland is the only country holding a national referendum on the fiscal pact, which all 27 EU members have signed except Britain and the Czech Republic, and the result will be closely watched around the continent.

Ireland is to vote in a referendum on a key EU pact designed to shore up the troubled eurozone, amid signs that a clear majority will vote to approve it.In the only referendum expected on the fiscal pact, which all 27 EU members have signed except Britain and the Czech Republic, polling stations were due to open at 7:00 a.m. (0600 GMT) and close at 10:00 p.m., on Thursday.

Nicolas Sarkozy has promised to hold a referendum on Europe's fiscal pact, dealing a hammerblow to Angela Merkel's "non-negotiable" plans to impose austerity on the eurozone.

A day after Irish voters backed a European Union fiscal pact, German Chancellor Angela Merkel on Saturday called on her political opponents to do the same so Germany too could ratify the measure.In a speech to her party members, Merkel welcomed the Irish referendum result and said Germany should adopt the fiscal pact before summer holidays.

Yesterday, various news agencies reported that Hungary opted out of the treaty while Sweden and Czech Republic remained "undecided". However, the latest spin is that Hungary did not opt out yet and the gang of 26 will forge ahead without the UK. UK the "Big Loser" Having Fallen into "French Trap"?

Door-to-Door May Drive Irish Towards Yes Vote in Referendum on Merkozy Pact. In a hard-fought battle to convince Irish voters to back Europe’s unpopular fiscal discipline treaty, Ireland’s deputy finance minister has the task of convincing the leafy Dublin suburb of Templeogue. Going door-to-door, Brian Hayes faces scepticism and occasional abuse. One constituent calls him “a waste of space”, another “just a yes man”.