European officials will move to prevent Spain from triggering a new round of convulsions as policy makers begin preparing for a summit next week aimed at easing the region's three-year-old debt crisis.

European finance ministers meet in Luxembourg today to discuss Spain's overhaul effort and closer banking cooperation. With European Union deficit enforcer Olli Rehn also saying the ministers may issue a statement lauding Greece on its budget measures, German Chancellor Angela Merkel tomorrow makes her first visit to the country since the turmoil began in 2009.

"It feels as if we are in for a month or so of Spanish trouble," Erik Nielsen, London-based chief global economist at UniCredit SpA, wrote in a note yesterday. Nielsen cited the risk that Spain will wait too long to request financial assistance and that a rescue package will be badly designed.