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Obama discusses economy of Spain with Rajoy
U.S. President Barack Obama called Mariano Rajoy yesterday to discuss the state of the Spanish economy, the euro zone's 4th largest, according to the website of Rajoy's office.
"They had agreed to talk a few days ago, it was not a surprise and is not unusual," a government source said.
The conversation took place at a time when analysts and economists believe there is an increasing chance that Spain may seek some form of sovereign bailout against a backdrop of punishing market conditions.
The yield on Spain's benchmark 10-year government bond, currently 6.80%, last week broke above the 7% level that analysts believe will make it more difficult for Madrid to finance itself in the medium term.
"They discussed the economy in Spain, in the European Union and on a global level. They also compared market conditions. PM Rajoy reiterated the efforts that the government and the Spanish people are making to cut the public deficit and to implement an ambitious series of reforms," the website said.
Rajoy and Obama last met at the most recent meeting of G20 leaders in the Mexican city of Los Cabos in June this year.
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