* Greece may need further debt restructuring: EU officials
* Spain pays 2nd highest euro-era yield on short-term debt
* 5-year borrowing costs now above 10-yrs, sounds alarm
* Moody's cuts outlook on EFSF to negative
* Spanish, French finance ministers to meet on Wednesday
By Julien Toyer and Luke Baker
MADRID/BRUSSELS, July 25 (Reuters) - Spain paid the second highest yield on short-term debt since the birth of the euro at an auction on Tuesday, and EU officials said Greece had little hope of meeting the terms of its bailout, casting fresh doubt on its future in the euro zone.
Spain's increasingly desperate struggle to put its finances right has seen its borrowing costs soar to levels that are not manageable indefinitely, reflecting a growing belief that it will need a sovereign bailout the euro zone can barely afford.
It has become the recent focus for investors, but Greece - where the sovereign debt crisis began - remains a powder keg. If Athens were to default or exit the euro zone, the knock-on effects could push Spain and even Italy over the edge.
Read more: http://in.reuters.com/article/2012/07/25/eurozone-idINL6E8IOKJA20120725
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