Spain's PM Mariano
Rajoy Hints He Might Seek Economic Bailout
August 03, 2012
Months of denial, Spanish Prime Minister Mariano Rajoy is hinting for
the first time that his debt-ridden country may seek an international
deciding, Rajoy said he would first study how the European Central Bank
structures its new plan to buy government bonds of debtor nations,
including Spain and Italy. The bank's direct bond purchases could cut
the soaring borrowing costs Madrid and Rome are facing on the world's
The interest rates on Madrid's bonds have spiraled to the level that
forced Greece, Ireland and Portugal to seek rescue packages. Until now,
Spanish officials had denied the government's need for a bailout.
But at his traditional mid-year news conference, Rajoy said that once he
knows more about the central bank's bond purchase plan, he would "take
the best decision" for Spain on a bailout.