The paper clip, 11 June

The European papers lead with the bail-out for Spain's banks agreed this weekend by the eurozone's finance ministers. Spain's El País and Portugal's Diario de Notícias write that an international troika – the International Monetary Fund, the European Central Bank and the European Commission – will monitor the restructuring of Spain's banks. Spain's El Mundo says that the Nobel Prize-winning economist Joseph Stiglitz does not believe the plan will work. Italy's Corriere della Sera couples its report with news of weak economic figures from Italy and, separately, what Italy is expected to contribute to the bail-out.

The Daily Telegraph says the deal could backfire on the Spanish government by “destabilising public finance and hampering the country's access to capital markets”. The Irish Times says the Spanish deal is a blow for plans to ease the terms of the Irish bank rescue.

The website of the UK's Guardian says that markets have rallied on the news of Spain's banks getting a bail-out. Frankfurter Allgemeine Zeitung, which gives extensive coverage to the bail-out, reports that global investors have welcomed the move. The paper says that in the short term the rescue has brought relief to the financial markets, particularly as the estimated amount – €100 billion – is greater than was expected. But the paper warns that the optimism could be short-lived, with the turmoil likely to flare up again because of Sunday's election in Greece. 

Süddeutsche Zeitung asks whether Spain is the next Greece. The general consensus is ‘No', because the economic and political situation is more stable. However, with unemployment dangerously high and the weak banking sector “like a millstone around its neck”, the picture is not altogether rosy. The eurozone is playing a “dangerous game in Spain”, according to Süddeutsche Süddeutsche Zeitung's editorial comment. It writes that there is a chance – but no certainty – of stopping a “domino effect” that would bring down Spain, then Italy, and then tear the eurozone apart.

Europe's problem is too much leadership, a former editor of the Economist writes in the UK's Times. The imposition of austerity is the shadow hanging over the continent – more important than the euro itself, he writes.

The French Socialists are guaranteed to emerge from parliamentary elections with a solid majority after the first round of elections were held yesterday (10 June). The second round will be held next Sunday (17 June). Le Monde reports that former French Socialist presidential candidate Ségolène Royal will face a difficult challenge in the second round of legislative elections against a dissident Socialist, Olivier Falorni. Libération writes that Nadine Morano, who was a minister in the former centre-right government, is at risk of losing her seat to the Front National. It writes that Morano will not reach out to far-right voters. Poland's Gazeta Wyborcza is among the many non-French papers with coverage.

Le Figaro writes that French President François Hollande wants to start a consultation in the autumn on reforming electoral institutions, including the election system and campaign finance.

A referendum on the EU is coming to the UK, argues a commentator in the UK's Independent. So why doesn't the UK's prime minister, David Cameron, take the lead?

The eyes of millions in Europe were this weekend on Poland and Ukraine at the start of football's European Championship. Poland's Gazeta Wyborcza and Rzeczpospolita have a range of articles on Poland's experience so far. Gazeta Wyborcza also looks at the state of preparations in the western Ukrainian city of Lvov.

George Osborne, the UK's finance minister, and former prime minister Gordon Brown will today appear before the inquiry into press standards, the Guardian writes. David Cameron, the current prime minister, will appear before the inquiry on Thursday as both main political parties face scrutiny over their relationships with media barons. Separately, a commentator in the Guardian writes that the Leveson inquiry has revealed a political class cut off from the public.

An economist explains in the Financial Times why he was won over by the Glass-Steagall act. The act can combat the excessive power of banks, he argues.

Several European airlines could go out of business this year, an economist specialising in aviation has warned. The Daily Telegraph says the chief economist of the International Air Transport Association believes there is “a serious risk to the financial viability of some airlines”.