Debt crisis: as it happened May 30, 2012 While another, conducted for Greek weekly newspaper Pontiki, showed a tie between Syriza and conservative party New Democracy - which backs the bail-out. A third forecast by GPO puts New Democracy in the lead with 23.4pc of the vote, compared with 22.1pc for Syriza. Greece heads to the polls for a second round of elections on June 17. 17.32 Many years ago I opened a bank account with the Halifax. The only reason? They were offering me a free Nintendo Game Boy. Now, bailed-out Spanish lender Bankia is deploying the same tactics in order to keep its young savers (or their parents) with the bank. Bankia is offering savers a Spiderman towel as part of a drive to hold onto deposits after being nationalised. According to Reuters, Spain's fourth largest lender holds around 10pc of Spanish deposits If savers manage to save €300 by the end of the month, they will bag a brand new towel, and for every €50 saved, holders can enter a draw for a trip to New York. Bankia's competitors, including Dutch rival ING Direct, have started aggressive advertising campaigns to poach accounts after a report of a deposit run in early May after the state takeover was announced. 17.07 European stock markets have closed for today. The FTSE 100 in London finished down 1.74pc at 5,297.28, while the CAC 40 in Paris fell 2.2pc to 3,015.58, and Germany's DAX 30 fell 1.8pc to 6,280.80. Spain's benchmark index closed at a fresh nine-year low. The IBEX 35 fell by 2.6pc today, to 6.090.40. Across the bond markets, Spanish 10-year borrowing costs edged closer to 7pc, at 6.67pc, while Italian borrowing costs rose to 6.07pc. 16.48 Meanwhile, German two-year bond yields have just fallen to ZERO. Swiss two-year bonds have produced a negative yield since last August. In other words, investors are willing to lose money in order to keep it safe. 16.40 Britain's borrowing costs could fall below 1pc, according to the manager of Fidelity's Strategic Bond fund. In a note to investors today, he said: The predominant economic trend of slow growth and falling inflation warrants a very low gilt yield, but at current levels I'm concerned the risks look asymmetric. In the near term the problems in the Eurozone could well cause gilt yields to grind lower, but at these levels I see limited price upside over a longer time frame. It is possible yields could go below 1% on 10-year gilts, but I think they are unlikely to stay there for a meaningful period of time. UK 10-year borrowing costs hit another low today of 1.635pc. Benchmark yields have fallen by almost 1pc within the past two months. 16.19 Ireland heads to the polls tomorrow (see 14.31) to decide on the EU's fiskalpakt. Conservative MEP Daniel Hannan argues "that it's hard to see what else the eurozone leaders have to do to encourage Ireland to vote 'No' to the FU Treaty": The polls might be wrong, of course. But the failure of any mainstream Irish party to push the default-decouple-devalue option is extraordinary. I blogged recently that, when Right-wing parties lock themselves into Euro-corporatism, they open the door to the populist Left. I was writing about France and Greece, but the same applies to Ireland. All the main parties are unblushingly taking the same line that they did during the last Euro-referendum, leaving the 'No' campaign to the Trotskyists and Sinn Féin. These parties have duly surged - SF has risen from seven to 24 per cent, and Gerry Adams is now the most popular party leader in the Republic - but, to put it as gently as possible, they have only limited appeal to Middle Ireland. Once again, the Pro-Treaty Forces intend to win through the overwhelming weight of big corporations, big parties and the MSM. 15.44 Austria has now rejected the EU's idea of using the ESM bailout fund to recapitalise banks. 15.42 Biggest Greek bank NBG posts €537m first-quarter net loss. 15.40 The euro has fallen to $1.2398 - lowest since July 2010. 15.30 There has been a glut of Greek election polls out over the course of this week. Suffice to say I won't bring you the results of them all. However, it's probably split 50:50 over who will win - anti-bailout Syriza and New Democracy. 15.11 The European Bank for Reconstruction & Development is to lend €1bn a year in Turkey. The money wil go to finance, infrastructure, energy and agriculture sectors, said Varel Freeman, vice-president of the EBRD. 15.02 Pending home sales in US in April fall 5.5pc, analysts expected 0pc. Dow down 1.2pc, S&P 500 down 1.1pc, Nasdaq down 1.3pc. 14.49 10-year US Treasury yield falls even further to 1.644pc - a new record low. 14.31 Ireland's government has made its final plea for voters to back a key EU pact designed to boost confidence in the euro, amid signs that the "yes" vote was well ahead. Prime Minister Enda Kenny said that by ratifying the fiscal pact, which would punish countries that sign up if they fail to balance their budgets, Ireland would send a signal that it will "never run riot with the people's money again." "This is about stability, bringing confidence to the euro," the premier said as he campaigned at Dublin railway station. Kenny said a "yes" vote on the German-backed pact would show Europe that Ireland could lead by example. 14.25 Royal Bank of Scotland are holding their AGM in Scotland today (we are running a live blog on it). RBS chairman Philip Hampton has said the risk of Greece quitting the euro is "increasingly a concern." The risk of a greek exit from the euro is increasingly a concern. 14.13 Quick update on the markets: 14.04 Euler Hermes, the world's biggest trade insurer, has suspended cover for exporters shipping to Greece amid fears the debt-laden nation could be forced out of the euro, hindering Greek importers' ability to pay their bills. 13.56 EC says tax evasion across EU amounts to €1 trillion a year. Rehn says it is too early to speculate on the impact of Bankia recapitalisation on Spain's public finances. He adds that France must take effective action on deficit. But expects country to meet 2013 deficit target. Rehn: Ireland has taken "bold, effective" measures to address deficit. 13.48 The ECB has removed a key paragraph from a statement earlier today on Bankia. Officially, the organisation came out against claims that the Spanish government planned to inject €19bn into Bankia by usiing sovereign debt swapped in the ECB. The first version of the communiqué contained a brief but significant paragraph: "It should be noted, however, that the funds needed to ensure banks' compliance with capital requirements can not be made by the Eurosystem." About 20 minutes later, the ECB rectified the statement, which was described as "wrong." The paragraph was removed, with the ECB citing "technical problems." 13.44 Rehn: Direct payments to banks are not legal. Banks should use private sources of capital. 13.39 US 10-year Treasury hits all-time low of 1.673pc. 13.37 EC says Germany should raise wages to lift competitiveness across rest of Europe. 13.34 Rehn: Greece may also get one-year extension on budget deficit reduction. 13.29 Germany has rejected the EU's plans to use the bailout fund to recapitalise banks. Government spokesman Steffen Seibert said at a regular press conference that the German rejection of the idea of any direct recapitalisation of banks by the ESM "is well known." 13.24 Rehn: Spain has taken strong action to push through tough reforms. Country taking important steps to solve imbalances and structural problems. Suggesting pushing out EU budget deficit deadline by one year to 2014 if Spain presents solid budget plan. Rehn says this is fair given Spain's recession and structural deficit cut. 13.16 Barroso has finished talking. Next up it's Olli Rehn, the European Union's monetary affairs chief. Live feed in this blog at 12.49. 13.10 Barroso: Europe is faced with very serious challenges. We believe that only together can we address those issues. US, China and Europe are economic poles in 21st century. Europe still the biggest. If there are doubts about the EU, our leverage will be less and we run the risk of irrelevance. 600m people can't compete with a country of 1.4bn. We need a strong Europe. 13.00 Finland rejects EU plans, says aid from European bailout fund (ESM) must got through member countries. 12.58 Barroso: Mood is negative in many member states. Concerned by public mood regarding own governments and measures taken by them. This is not new when economies are not doing well. 12.56 Germany says it "has faith in Spain's reform efforts." Finance minister Wolfgang Schaeuble meeting Spanish finance minister today for informal meeting. 12.54 Barroso denies there is a lack of financing in the eurozone. 12.49 José Manuel Barroso, President of the European Commission, says EC has produced 100,500 pages looking at economic health in 27 member states and offering rcommendations. Live feed from EC He believes youth unemployment levels are "dramatic" and "unnacceptable." Adds that "we intend to look at steps towards full economic union. We remain convinced of the benefits the common currency has delivered and will do in the future... Many member states now argue in favour of a Common Deposit Guarantee Scheme. 12.35 Back to that EU report, and after a thorough health check on both Spain's economic position and Madrid's efforts to implement the reforms it has agreed to execute, Brussels officials concluded: "Overall the policy plans submitted by Spain are relevant by in some areas they lack the sufficient ambition to address the challenges identified." Hopes for recovery are being hampered by poor progress by Madrid, but far more by the "external enviroment." I commited one horrendous crime: I became a professional at age 40 and I plunged myself in debt. Now, I'm an idiot of 61 years and I have to pay. I hope my grandchildren are not born in Greece, seeing as there will be no Greeks here from now on. Let them at least know another language, because Greek will be wiped off the map! Unless of course there was a politician with Thatcher's balls so as to put us and our state in line.