Italy, Spain to Shun Aid Unless Yields Jump, Polillo Says

Italy and Spain won’t request bailouts unless a new surge in bond yields leaves them shut out of markets as no government will voluntarily accept conditions imposed for the aid, a senior Italian government official said.

“There won’t be any nation that voluntarily, with a preemptive move, even if rationally justified, would go to an international body and say — ‘I give up my national sovereignty,’ ” Gianfranco Polillo, undersecretary of finance, said in an interview in Rome late yesterday. “I rule it out for Italy and for any other country.”

Italian and Spanish 10-year bond yields have dropped more than 1 percentage point since European Central Bank President Mario Draghi first signaled on Aug. 2 that the bank would buy debt of distressed euro-region nations in tandem with the European Union’s bailout funds. Photographer: Alessia Pierdomenico/Bloomberg

The program “will be activated only when the single countries have the water up to their necks,” Polillo said.

Via – Bloomberg

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