Spain is desperate, pleading and begging for help. Literally Spain said it does not have access to markets to refinance their debt. This is after the G7 decided to do nothing.

Spain said on Tuesday it was losing access to credit markets and Europe should help revive its banks, as finance chiefs of the Group of Seven major economies conferred on the currency bloc's worsening debt crisis but took no joint action.

Treasury Minister Cristobal Montoro sent out a dramatic distress signal about the impact of his country's banking crisis on government borrowing, saying that at current rates, financial markets were effectively off limits to Spain.

"The risk premium says Spain doesn't have the market door open," Montoro said on Onda Cero radio. "The risk premium says that as a state we have a problem in accessing markets, when we need to refinance our debt."

Now Spain is up against it, testing the market with a bond sale, all in hope of avoiding a bail out, with all of the austerity demands that come with one.

Spain will try to raise between one and two billion euros in bonds on Thursday, a crucial yet cautious test of Madrid's ability to tap investors after a minister said the country was being cut off from the markets.