Spain faces more rating agency downgrades, predicts the managing director of Roubini Global Economics.

"S&P and the other rating agencies will have to continue to downgrade. I don't think we're done with that process," Arnab Das told CNBC.

S&P downgraded Spain to BBB-plus due to concern it may not meet its budget deficit targets.

Das works with Nouriel Roubini, who is famous for predicting the 2008 financial crisis.

Das and Roubini argue that the euro zone should break up because of its deep-seated problems.

The eurozone's plan of promoting expansion through fiscal contraction "is mumbo jumbo," he said. "It's an internal contradiction. It doesn't work."

Eurozone leaders have talked about a "growth pact," saying that austerity alone cannot turn around Europe's troubled economy.

"Talk is cheap," Das told CNCB. "There isn't a growth strategy, and just saying that you're going to have one isn't good enough."

Das sees continued pressure on Spain as well as Italy. Spain will need more help from the European Central Bank, he said.

The only way to solve the crisis is for core countries to increase spending, allowing other countries to increase exports, he said.

"Spain is in a crisis of huge proportions," Spanish Foreign Minister Jose Manuel Garcia-Margallo said in a radio interview, according to Reuters.

Its unemployment rate is 25 percent. Bank shares fell 3.38 percent, and the countries borrower costs were up.

"The figures are terrible for everyone and terrible for the government," he said, Reuters reported.