Spanish Prime Minister says Spain Does Not Need European Help

Spanish Prime Minister Mariano Rajoy said on Friday that Spain did not need to tap for now the European Central Bank’s bond-buying program for troubled euro zone governments but did not rule out asking for aid in the future.

Rajoy has faced pressure from Spain’s international partners — including the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) — to seek a European Union bailout. He has resisted so far, helped by an easing of the euro zone debt crisis.

“We are not thinking of asking the European Central Bank to intervene and buy bonds in the secondary market,” he said at a news conference in Madrid. “But we can’t rule it out in the future.”

Rajoy has been able to delay a rescue because the ECB’s pledge to intervene in the market and support Spanish bond prices has brought down Spain’s borrowing costs since the summer.

He praised the ECB’s move on Friday.

“I think it has been a very significant decision. It has had a calming effect on the markets,” he said.

via Reuters

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