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Spain caves in to market pressure and asks Europe for bank bailout

Posted By admin On June 6, 2012 @ 8:31 am In World News | Comments Disabled

London Independent [1]
June 6, 2012

Spain dropped its opposition to external funding and for the first time yesterday appealed to Europe for help in overcoming its worsening financial crisis, after Germany proposed a banking union to stabilise the Continent’s economy and ease eurozone turmoil.

Madrid’s call signalled a departure from the previous stance of Mariano Rajoy’s conservative government, which had rejected the idea of external funding to assist the country in recapitalising its ailing banks because of fears that such a move would undermine market confidence in Spain.

Yesterday, however, Cristobal Montoro, the Treasury minister, appeared to break ranks with the Prime Minister when he made a direct appeal to European institutions to help to shore up the country’s banks. “The door to the markets is not open to us at the moment,” he said, in an admission that Spain’s borrowing costs were too high. “The future of the euro is at stake.”

He told the broadcaster Onda Cero: “The banks don’t need excessive amounts to recapitalise. That’s why it’s so important that the European institutions open up and help us achieve, help facilitate that figure, because we are not talking about astronomical amounts.”

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URLs in this post:

[1] London Independent: http://www.independent.co.uk/news/world/europe/spain-caves-in-to-market-pressure-and-asks-europe-for-bank-bailout-7818049.html

[2] Spain sets course for full-scale €300bn bailout: http://www.prisonplanet.com/spain-sets-course-for-full-scale-e300bn-bailout.html

[3] Here They Come: Ireland Demands Renegotiation Of Its Bailout Terms To Match Spain: http://www.prisonplanet.com/here-they-come-ireland-demands-renegotiation-of-its-bailout-terms-to-match-spain.html

[4] Jim Cramer Is Predicting Bank Runs In Spain And Italy And Financial Anarchy Throughout Europe: http://www.prisonplanet.com/jim-cramer-is-predicting-bank-runs-in-spain-and-italy-and-financial-anarchy-throughout-europe.html

[5] Who’s running Europe? Now Obama pressures Spain over cuts after whispers he advised Merkel on saving the euro: http://www.prisonplanet.com/whos-running-europe-now-obama-pressures-spain-over-cuts-after-whispers-he-advised-merkel-on-saving-the-euro.html

[6] Greek anger as Spain is handed 100bn bailout with NO need for austerity measures… and world markets bounce back: http://www.prisonplanet.com/greek-anger-as-spain-is-handed-100bn-bailout-with-no-need-for-austerity-measures-and-world-markets-bounce-back.html

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