Spain rejects need for bailout

Spain has rejected any suggestion that it might be the fourth eurozone member to seek an international bailout, Deutsche Welle reports.

Izvor: Deutsche Welle

Friday, 08.04.2011.

09:48

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Spain has rejected any suggestion that it might be the fourth eurozone member to seek an international bailout, Deutsche Welle reports. Madrid’s efforts to reassure markets came after Portugal announced it would become the third EU member, after Greece and Ireland, to seek financial help. Spain rejects need for bailout Spain is considered by many to be the next most likely candidate to need help, with Madrid struggling to bring down a public deficit that in 2009 reached 11.1 percent of gross domestic product. However, Spanish Finance Minister Elena Salgado said the country, which has already introduced a raft of unpopular austerity measures, needed no help and was in no danger of "contagion." "The possibility of contagion and a rescue for Spain is out of the question," Salgado told Spanish National Radio (RNE) on Thursday, pointing out that, until 2008, Spain had enjoyed a public budget surplus. "We have a history of surpluses and years of strong growth which is something that Portugal does not have," the minister said. "For a long time now the markets have distinguished between Spain and Portugal. Our economy is more powerful, diverse and competitive than the Portuguese," added Salgado. Madrid has adopted a policy of stringent budget cuts and labor, pension and banking reforms in order to avert the threat of becoming the fourth eurozone domino to topple.　 Spain was given a vote of confidence by the head of the Organization for Economic Co-operation (OECD) on Thursday. "Spain will not have the same problems as Portugal," said Angel Gurria at a meeting of finance ministers in Brussels. Gurria said that Madrid had been addressing its problems, which were "never the same" as those in Portugal, from some time. European finance ministers were due to meet on Thursday for a relatively pressure-free discussion on the future of the fiscally challenged eurozone, but the proceedings have been dealt extra urgency by the Portuguese decision. Ministers now face the difficult task of assessing how to appease unforgiving markets following this latest economic blow. A graffiti in Madrid reads, Capitalism the Killer (Beta/AP)

Spain rejects need for bailout

Spain is considered by many to be the next most likely candidate to need help, with Madrid struggling to bring down a public deficit that in 2009 reached 11.1 percent of gross domestic product.

However, Spanish Finance Minister Elena Salgado said the country, which has already introduced a raft of unpopular austerity measures, needed no help and was in no danger of "contagion."

"The possibility of contagion and a rescue for Spain is out of the question," Salgado told Spanish National Radio (RNE) on Thursday, pointing out that, until 2008, Spain had enjoyed a public budget surplus. "We have a history of surpluses and years of strong growth which is something that Portugal does not have," the minister said.

"For a long time now the markets have distinguished between Spain and Portugal. Our economy is more powerful, diverse and competitive than the Portuguese," added Salgado.

Madrid has adopted a policy of stringent budget cuts and labor, pension and banking reforms in order to avert the threat of becoming the fourth eurozone domino to topple.　

Spain was given a vote of confidence by the head of the Organization for Economic Co-operation (OECD) on Thursday. "Spain will not have the same problems as Portugal," said Angel Gurria at a meeting of finance ministers in Brussels. Gurria said that Madrid had been addressing its problems, which were "never the same" as those in Portugal, from some time.

European finance ministers were due to meet on Thursday for a relatively pressure-free discussion on the future of the fiscally challenged eurozone, but the proceedings have been dealt extra urgency by the Portuguese decision.

Ministers now face the difficult task of assessing how to appease unforgiving markets following this latest economic blow.

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