Tag Archives: Mariano Rajoy

EU Trials New Crisis Model in Spain Trading Budget Cuts for Time

By Ben Sills – European leaders are testing the latest version of their debt crisis strategy in Spain, granting Prime Minister Mariano Rajoy more time to reduce the budget deficit in exchange for deeper spending cuts.

Europe’s concession to recession-wracked Spain has raised expectations in Ireland and Portugal that they can win more time to rein in their budget deficits after Germany’s hardball tactics in Greece spurred a rebellion against bailout politics there. more> http://tinyurl.com/clbjgzw

Germany finalizing face-saving aid deal for Spain

By Annika Breidthardt and Andreas Rinke – While Berlin remains firm in its rejection of Spain’s calls for Europe‘s rescue funds to lend directly to its banks, the officials said that if Madrid put in a formal aid request, funds could flow without it submitting to the kind of strict reform program agreed for Greece, Portugal and Ireland.

Instead, Spain would only have to agree to new conditions tied to the reform of its banking sector. more> http://tinyurl.com/cbp35pt

Stage set for Hollande-Merkel showdown at EU summit

By Luke Baker – For the first time in more than two years of debt-crisis meetings, the leaders of France and Germany have not held their own mini-summit beforehand to agree positions, marking a significant shift in the traditional Franco-German axis.

Instead, new French President Francois Hollande will meet Spanish Prime Minister Mariano Rajoy in Paris to discuss policy, before the pair travel to Brussels for the 1800 GMT summit.

Despite fears that Greece could exit the currency bloc, Spain, where the economy is in recession and the banking system is in need of wholesale restructuring. more> http://tinyurl.com/cqxsko8

Spanish bailout ‘impossible’ for eurozone, says prime minister Mariano Rajoy

By Louise Armitstead – “To talk about a bail-out for Spain at the moment makes no sense,” Mr Rajoy told reporters. “Spain is not going to be rescued; it’s not possible to rescue Spain, there’s no intention to, it’s not necessary and therefore it’s not going to be rescued.”

Italy managed to raise $4.88bn (£4.03bn) at a bond auction but only by paying a markedly higher price. The bulk of the bonds – $2.88bn – were sold at a yield of 3.89pc, up from 2.76pc at an auction on March 14.

Meanwhile, the Greek unemployment rate rose to 21.8pc, according to fresh figures from the national statistics office. During 2011, the average annual jobless rate soared to 17.7pc from 12.5pc the year before, revealing the toll of the crisis and resulting austerity measures that have seen one-in-10 jobs destroyed. more> http://tinyurl.com/bwqcpmq