Spain , one of the eurozone 's economic giants , is widely expected to become the bloc 's next victim of the debt crisis . The eurozone 's fourth-largest economy appears headed toward a sovereign bailout , market watchers say . The question now is when . Spain faces regional dissent ahead of local elections , 20 billion euros ( $ 25 billion ) in debt repayments this month , violent protests on the street , savage budget cuts and devastating unemployment rates . Analysts and economists canvassed by CNN say the issue is whether the country can survive the near term challenges or be forced to seek assistance within weeks . Spain has tried to stem its crisis with a tough budget and an audit on its banking needs . But its efforts face headwinds including pressure from the markets and contagion from frail eurozone members such as Greece and Portugal . Crisis in-depth . According to Ralph Silva , director of Silva Research Network : `` Spain is not 100 % in control of its own destiny . '' Daiwa Capital Markets economist Tobias Blattner believes the upcoming vote for independence in Catalonia -- the country 's most fractious region -- could tip Spain into seeking a bailout . He expects the Spanish government to request external help between October 21 and November 25 , when local elections will take place . Blattner noted : `` Market pressure is likely to rise ahead of the vote for independence in Catalonia as uncertainty over Spain 's political cohesion will surge . '' But Silva believes Spain will be able to hold out until January , despite the regional bickering . He told CNN : `` These political disputes were never really addressed before because everyone was filthy , stinking rich . When you 're filthy , stinking poor , everything matters . '' Elisabeth Afseth , of Investec , told CNN that Spain 's upcoming bond payments -- of 5.3 billion euros on October 29 and 15 billion euros on October 31 -- will leave the coffers `` very empty . '' She added , `` Assuming the Treasury has sufficient cash reserves to cover the October redemptions the next pressure point comes in January . '' Spain : Gliding toward bailout ? While it is `` difficult '' to rule out a need for aid this year , Spain 's situation is likely to drag on a little longer , she added . James Nixon , chief European economist at Societe Generale , believes the risk of a bailout is not `` imminent '' but that another spike in the country 's borrowing costs would likely be the catalyst for any request . Spain is already poised to tap Europe 's bailout funds to help its banks , which require almost 60 billion euros in support , according to last week 's audit . Spain has 100 billion euros available to it after the Eurogroup in July agreed to assist the country to recapitalize its banks . However , Spain has always said the bank bailout is not a sovereign bailout , unlike those given to Greece , Ireland and Portugal . The banking audit showed seven of the 14 banks assessed -- accounting for approximately 38 % of the Spanish banking system 's credit portfolio -- failed the stress tests . Spain 's next crisis : Regional splits ? At a press conference in Madrid last week , deputy economy minister Fernando Jiménez Latorre said Spain may ask for 40 billion euros of European aid while the rest of the money could come from the banks themselves . However , Silva said : `` if you do n't force mergers [ between banks ] 60 billion euros is n't going to be enough , its going to be closer to 100 billion euros . '' And Daiwa credit analyst Michael Symonds , commenting on the stress tests last week , told CNN the country still faced the `` heavy lifting . '' He added , `` Over the coming months , restructuring plans will need to be finished-off and approved , the architecture of the bad bank finalized , and the delicate task of haircutting subordinated creditors -- many of which are retail investors -- carried out . ''
Spain faces regional dissent ahead of local elections , 20 billion euro in debt repayments due this month . Comment: The eurozone 's fourth largest economy will need a sovereign bailout , market watchers say .