Bailout request not imminent
Despite mounting speculation in recent days, Spanish Prime Minister Mariano Rajoy has said that a request for a bailout is not imminent. Government officials have said that Spain continues to negotiate conditions and that the country’s borrowing costs are down on earlier in the year.
The regions, which control a third of Spain’s spending, have reiterated their commitment to meeting the targets negotiated with the EU and reducing the deficit below 3% of GDP by 2014. This is despite the fact that they are being forced to push through cuts that are affecting education and healthcare.