Saturday 19 April 2014
Advertise  |  Subscribe  |  Register  | 


About cookies: we use cookies to support features like login and sharing articles. Keep cookies enabled to enjoy the full site experience. By browsing our site with cookies enabled, you are agreeing to their use. Review our cookies information for more details.

Rajoy will not request bail-out

By Ian Wishart  -  08.11.2012 / 02:11 CET

The prospect has receded of Spain requesting a full bail-out in the coming weeks after Mariano Rajoy, the prime minister of Spain, said he would not ask for assistance if there was no evidence that the country's borrowing costs would go down as a result.

Rajoy's announcement will be welcomed privately by Germany, which has been urging Spain not to request help from the eurozone's rescue fund – the European Stability Mechanism (ESM) – or the European Central Bank (ECB).

However, it risks unsettling financial markets, because traders had become so certain that Spain would receive external support that they had priced this into their transactions.

“If we remain with the same borrowing costs [as we do now], then there is no sense [in asking for a bail-out],” Rajoy said in a radio interview on Tuesday (6 November).

Spain's bond yields – an indication of borrowing costs – have fallen in recent weeks, after reaching euro-era record highs earlier in the year.

Rajoy had previously hinted that he would apply for a precautionary credit line from the ESM and for bond-buying help from the ECB.

© 2014 European Voice. All rights reserved.

Most viewed in Economics

Deal reached on banking union

Compromise on bank resolution fund should bolster confidence in EU banking sector.

Euro sihn train

Germany signals some support for UK over EU reform

Finance ministers call for safeguards for member states outside the eurozone.

Finance ministers

ECB leaves rates unchanged

Draghi defends decision not to take action, says governing council talked about quantitative easing.

Draghi crowd

Related articles

Draghi may cut interest rates to negative levels.

Finance ministers and central bank governors meeting in Washington over the weekend sounded a cautiously upbeat note about the eurozone economy.

The banking union will harden the divides between the north and south and the core and periphery.

Money bolsters government ahead of European elections and in dealings with troika.

Draghi defends decision not to take action, says governing council talked about quantitative easing.




Your comment
Please note: The fields followed by an asterisk (*) are obligatory fields



Please, copy the code on the left into the box on the right

 I accept the Terms & conditions
 I would like to share my e-mail & website


Cookies info | Privacy policy | Terms & conditions