How To Guides
- Childbirth & Education
- Legal Formalities
- Pensions & Benefits
- Property & Accommodation
Did you know...?
- Airports and Airlines Spain
- Paramount Theme Park Murcia Spain
- Corvera International Airport Murcia Spain
- USD weekly currency update- 27 May 2016
- When Expat Eyes Are Smiling
- Meet Wincham at The Homes, Gardens & Lifestyle Show, Calpe
- QROPS 2014
- Spain Increases IHT in Valencia & Murcia
- Removals to Spain v Exports from Spain
- The Charm of Seville
- Gibraltar Relations
- Retiro Park : Madrid
- Wincham announce opening of Marbella office
- Community Insurance in Spain
- Calendar Girls
- Considerations when Insuring your Boat in Spain
- QROPS – HMRC Introduces changes that create havoc in the market place
- QROPS – All Change From April 2012
Madrid Mayor says Spain rescue "seems inevitable"
The mayor of Madrid, a prominent member of Spain's ruling party, said on Friday it "seems inevitable" the central government would apply for some kind of international aid package as the country goes through a deep recession and borrowing costs soar.
Ana Botella, wife of former PM Jose Maria Aznar, is the first high-level Spanish official to say publicly that the country would need a financial rescue.
"There's no doubt about it. It's very probable that we're going to have to ask for help from the EU," Botella told Spanish news agency Europa Press in an interview.
"It seems inevitable," the agency quoted her as saying.
Spain's recession-hit economy, shattered banking system and sky-high unemployment are at the centre of concerns over the future of the euro zone as investors worry a bailout of the bloc's 4th largest economy would stretch its rescue funds to breaking point.
PM Mariano Rajoy has said he would not take a decision on whether to apply for a new aid package, on top of a €100-billion loan for the country's banks, until he knew what conditions would be attached.
Possible options would be for Spain to apply for a precautionary credit line or to petition the European rescue fund to buy Spanish sovereign bonds to force down yields.
ECB President Mario Draghi earlier this month laid out plans.
The yield on Spain's benchmark 10-year government bond , dropped on Friday to 6.49%, its lowest level since early July, as banks took the bonds for use as collateral to raise funds.
Rajoy has slashed public spending and hiked taxes in an effort to deflate one of the euro zone's largest public deficits and convince nervous markets, which have pushed borrowing costs to 14-year highs, he can control the country's finances.
Botella was made mayor after the conservatives came to power in December and her predecessor was named to Rajoy's cabinet. She said she blamed the previous Socialist government for leaving the country with a massive public account shortfall and leaving Rajoy no choice but to seek international aid.
Latest News & Stories
- Vodafone Spain to start offering Telefonica indirect fibre
- Spain arrests 30 suspected of laundering money in bitcoin centres
- Passenger flight dodges three drones before landing in Bilbao
- Almost 30% of Spaniards at risk of poverty or social exclusion
- Spain tops euro zone for political risk to the economy, says ECB
- 30 arrests in Spain for pay-TV piracy
- Spain's centre-right PP to strengthen position in election - poll
- Popular Party faces freeze on assets if it fails to pay €1.2m civil bond
- Spain trade deficit falls 10.6% in March y/y
- Security fears hit Thomas Cook as tourists choose Spain over Turkey