Zapatero dismisses Spanish need for bail out
The Spanish Prime Minister has “absolutely” dismissed the need for international intervention to bail out the country, in a radio interview this morning.
Speaking today to Spanish radio Rac1, Jose Zapatero said that Spain has one of the most solid financial systems in Europe, and argued that the country's public debt is still 20 points less than the European average.
“Those investors who are betting against Spain are going to be mistaken,” said the Spanish PM.
Trying to reassure the many sceptics about the stability of Spanish finances, he said that the current deficit is being reduced scrupulously, and the state finances are settling back to normal at a steady pace.
The Prime Minister added that Spain it yet to receive any pressure, by the EU or the Central Bank, to tighten measures to meet deficit cut targets by 2013.
The PM's intervention comes amid increasing worries from the European community about the stability of the Iberian peninsula. After Ireland – which agreed to a £85bn bail out – Portugal is seen as the next country likely to need help.
On the other hand, some have warned that rescuing Spain may be too onerous for the EU pockets, while Portugal could be rescued with a relevantly smaller figure.
Earlier this week, the opposition Popular Party accused the Spanish government of hiding the real data depicting the seriousness of the situation.
Esteban Pons, Popular Party spokesman, said: “When international investors look at a country they ask who is the economy minister, and hope that minister always says reasonable, sustainable things and not a bunch of nonsense.”
Mr Zapatero criticised the Popular Party for having “questioned the information on public accounts in this country”.
Speaking to the same radio two days ago, the minister of the economy Elena Salgado said: “We must remain calm. We run no risk of having to be rescued. Our economy is very different and, above all, our financial sector has always been in good health.”
PM Zapatero added this morning that there are currently no plans to raise taxes or to massively cut jobs in the public sector.
(Read the full article on The Fresh Outlook)
20.11.2010
Speaking today to Spanish radio Rac1, Jose Zapatero said that Spain has one of the most solid financial systems in Europe, and argued that the country's public debt is still 20 points less than the European average.
“Those investors who are betting against Spain are going to be mistaken,” said the Spanish PM.
Trying to reassure the many sceptics about the stability of Spanish finances, he said that the current deficit is being reduced scrupulously, and the state finances are settling back to normal at a steady pace.
The Prime Minister added that Spain it yet to receive any pressure, by the EU or the Central Bank, to tighten measures to meet deficit cut targets by 2013.
The PM's intervention comes amid increasing worries from the European community about the stability of the Iberian peninsula. After Ireland – which agreed to a £85bn bail out – Portugal is seen as the next country likely to need help.
On the other hand, some have warned that rescuing Spain may be too onerous for the EU pockets, while Portugal could be rescued with a relevantly smaller figure.
Earlier this week, the opposition Popular Party accused the Spanish government of hiding the real data depicting the seriousness of the situation.
Esteban Pons, Popular Party spokesman, said: “When international investors look at a country they ask who is the economy minister, and hope that minister always says reasonable, sustainable things and not a bunch of nonsense.”
Mr Zapatero criticised the Popular Party for having “questioned the information on public accounts in this country”.
Speaking to the same radio two days ago, the minister of the economy Elena Salgado said: “We must remain calm. We run no risk of having to be rescued. Our economy is very different and, above all, our financial sector has always been in good health.”
PM Zapatero added this morning that there are currently no plans to raise taxes or to massively cut jobs in the public sector.
(Read the full article on The Fresh Outlook)
20.11.2010