Spain is ready to request a euro zone bailout for its public finances as early as next weekend but Germany has signaled 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 program 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 senior euro zone sources confirmed the shift in the Spanish position, all speaking on condition of anonymity because they were not authorized 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 recognize 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.
"It doesn't make sense to send looming decisions on Greece, Cyprus and possibly also Spain to the Bundestag one by one," the senior German source said. "Bundling these together makes sense, due to the substance and also politically."
Read more: http://www.reuters.com/article/2012/10/01/us-spain-bailout-idUSBRE8901AB20121001
This is extremely bad situation for Spain, who could have thought that Spain was going to become the scond Greece with all its fast loans. But hopefully Wolfgang Schaeuble is right and Spain will be able t overcome its finacial crisis and will not need a bailout. But unfortunately it is not as easy do to this as to say
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