Economists are well aware that Spain will be next to seek a bailout, however it still remains unclear when they will need the funds and the levels of funds they would need. With Spain’s economy being the twelfth largest worldwide and the fifth largest in the European Union, as well as the Eurozone's fourth largest, it would suggest that Madrid would be seeking a multi-billion Euro bailout for its banks and possibly for the state itself.

After an inspiring first quarter, investors across the board are now on the lookout for what may be yet another sell off. The FTSE 100 - the UK's leading index of shares - ended the first quarter of the year up 3.5% - wiping out about two-thirds of the losses investors suffered in 2011. The Dow rose 994 points, or 8.1%, and the S&P 500 rose 150.87 points, or 12%, during the first three months of 2012, amid signs of a strengthening US economic recovery. However, 2010 and 2011 both similarly saw an early rally in the markets which was then followed by a dramatic downturn which begun in the spring.

Following a 12 hour meeting, European finance ministers have agreed on a second bailout package for Greece worth €130bn. The deal is expected to bring the government debt in Athens down to 120.5% of gross domestic product by 2020 – this is approximately the maximum level the IMF and the Eurozone considers sustainable.

Though economic conditions in Europe remained uncertain, financial markets in 2012 took off on a positive note across the globe as the appetite for risk returned globally and liquidity found its way back into the capital markets, both in the developing and emerging economies.  This may be a sign that as Europe continues to struggle out of its woes, investors across the globe are beginning to live with it!