Just passing this news along, Ireland said the same thing a couple of weeks ago. Again it doesn't matter, this is becoming very repetitive news. There is no such thing as failure. The more bailouts the better they think the global economy will fair in years to come. I say yea right. Spanish Prime Minister 'Absolutely' Rules out Bailout Reuters | November 26, 2010 | 06:30 AM EST There is absolutely no chance Spain will need outside help to manage its finances and the country has no plans to introduce extra fiscal measures, Prime Minister Jose Luis Rodriguez Zapatero said on Friday. Investors should think twice about betting against the country, he added, telling private regional broadcaster RAC1 radio: "Those who are taking short positions against Spain are going to be mistaken". Spain's borrowing costs have soared as investors sell off its sovereign bonds on concerns its high deficit and debt-laden banks could force it to follow Greece and Ireland in seeking a financial bailout. Zapatero said he "absolutely" ruled out that eventuality. But the premium investors demand to hold Spanish government bonds rather than benchmark German debt hit a new euro-lifetime high on Friday, as worsening investor sentiment continued to impact larger states on the euro zone periphery. Zapatero said neither the European Commission nor the Central Bank had urged Spain to take additional measures in order to meet targets to cut its deficit to euro zone limits by 2013. "The European Commission has not asked Spain for anything, the ECB has not asked Spain for anything, neither yesterday nor the day before," he said. Zapatero reiterated that his government did not plan any tax hikes in addition to a one-percentage point rise in value-added tax earlier this year. "The VAT rise has contributed a lot to our deficit reduction," he said, referring to figures released on Tuesday showing Spain's central government deficit for the year to October had fallen by 47.3 percent, year-on-year. "There will be no more commitments in fiscal matters," he said, repeating comments made in recent months.
Spain has 20% unemployment. Instead of closing the weaker banks, the government lent them more money, and these banks decided to spend it by offering 6% savings accounts to steal customers away from the stronger banks. Furthermore, by paying the customers the dividends, they are running out of money. However, with some stocks already down over 40%, eventually there should be a good time to invest.
"There is absolutely no chance Spain will need outside help to manage its finances and the country has no plans to introduce extra fiscal measures", Prime Minister Jose Luis Rodriguez Zapatero said on Friday. Translation: "Spain will need outside help to manage its finances and the country is on the brink of introducing extra fiscal measures", Prime Minister Jose Luis Rodriguez Zapatero avoided saying on Friday.