Skip to comments.Exclusive: Spain ready for bailout, Germany signals "wait" - sources
Posted on 10/02/2012 10:16:01 AM PDT by mojito
Spain is ready to request a euro zone bailout for its public finances as early as next weekend but Germany has signalled that it should hold off, European officials said on Monday.
The latest twist in the euro zone's three-year-old sovereign debt crisis comes as financial markets and some other European partners are pressuring Madrid to seek a rescue programme that would trigger European Central Bank buying of its bonds.
"The Spanish were a bit hesitant but now they are ready to request aid," a senior European source said. Three other euro zone senior euro zone sources confirmed the shift in the Spanish position, all speaking on condition of anonymity because they were not authorised to discuss the matter.
German Finance Minister Wolfgang Schaeuble has said Spain is taking all the right steps to overcome its fiscal problems and does not need a bailout, arguing that investors will recognise and reward Spanish reforms in due course.
Privately, several European diplomats and a senior German source said Chancellor Angela Merkel preferred to avoid putting more individual bailouts for distressed euro zone countries to her increasingly reluctant parliament.
(Excerpt) Read more at uk.reuters.com ...
These bailouts are such BS. Spain has not demonstrated any will to deal with its spending and entitlement issues. No Euro government has. These bailouts do nothing more than extend an unsustainable system. Maybe we need a crash that comes with being unable to spend anymore. Hell, perhaps they should all do what France did and jack up taxes to 75% or 80% on the “rich”. They will quickly see that people don’t like working for free and tax revenue will dry up. Thus, with no tax revenue and no bailout, they will be unable to spend. People may riot but so be it. If there is to be a war over entitlements, let’s have it now.
And when, in 1-3 years..Spain, Greece, Italy and others have failed to keep their part of the bargain..the German people are going to vote in a very right wing nationalistic party..this is the LAST kick of the can down the raod..
Might be a (minor) factor, but Angela is more concerned about her political position in Germany than what is happening in the US. Shifting position may mean that Spain is getting into real trouble (e.g., riots and Catalan secession), so O may be about to get a Spanish ‘surprise’ whatever Angela does.
I suspect another part of Spain asking ASAP is they are hoping for “approval” before the magnitude of the current dip into recession in Europe and elsewhere.
... becomes evident.