The biggest bailout the European Union will have to do if it comes to it will be Spain and it is worrying that there is not a set mechanism on how to go about it, Cornelia Meyer, CEO & Chairman, MRL Corporation, told CNBC Monday.
At the weekend, euro zone financial ministers and Irish officials agreed on a bailout of under 100 billion euros ($137 billion) for Ireland, sending stocks in Europe and the euro higher, as investors breathed a sigh of relief.
But the next in line for European Union and International Monetary Fund money may be Portugal, and then Spain, analysts said.
"We're getting near the end-game in terms of Ireland, and that was a good bailout, and we did all the right things; but hot on the heels of Ireland we have Portugal and then Spain, and Spain will be the biggie," Meyer said.
She predicted that a Spanish bailout would likely cost up to 500 billion euros; but there is no "real mechanism" to deal with it, Meyer added.
"We saw it with Greece and the unhelpful way of solving the Greek problem and we saw it again with Ireland and some very unhelpful comments out of Germany," she said. "We really need to get to a modus operandi."
Relief over the agreement on Ireland has lifted stock markets but there are still clouds on the euro zone horizon, Philippe Gijsels, head of global markets research at BNP Paribas Fortis, said.
"You still have Portugal; you still have the line in the sand with Spain, and also you have the emerging markets that scare me, because with all the money that’s put into the system by Bernanke, you see massive inflation in these countries," Gijsels said.
Printing money, especially by the US, will cause "massive inflation" in emerging market countries and they will probably raise capital requirements and interest rates and try to stem their currencies' appreciation, he said.