Almunia says a full Spanish rescue will not happen

Date: Monday 18 Jun 2012

The Vice-President of the European Commission has said that there will not be a full-blown state bailout of Spain, in addition to the banking sector rescue, because the Spanish Treasury still has an open door in the bond markets.

Joaquin Almunia, who is also the European Commissioner for Competition, said that Spain has more than enough demand for its debt despite soaring bond yields as of late.

"The doors to the markets are open to it and I am sure they will carry on being so," he said in an interview with TV3 that was picked up by Europa Press.

As regards to the bailout of the Spanish banking system, Almunia said that it is normal to expect conditions. Whenever money is borrowed, there are always conditions, as happens between siblings, between banks and businesses and also between the European Union and its members, Almunia explained.

MD

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