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Friday 11th of February 2011
December 6, 2010    

Spain will not follow Greece and Ireland and seek bailout

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by Kay Murchie
Spain will not follow Greece and Ireland and seek bailout

Spain’s finance minister has insisted that the country will not follow Greece and Ireland and seek a bailout.

In a newspaper interview published today, Elena Salgado said: “Our fiscal adjustment is on track… we have done all the things that we had to do with our financial sector.”

She added that Spain is “absolutely not” seeking a rescue.

Speculation has been mounting that some of the euro zone’s weaker economies may need financial aid after borrowing costs have been soaring to dangerous levels.

Portugal, in particular, has rejected claims that it could be next in line for a bailout, while fears have been mounting for Italy and Belgium.

However, bailing out Spain and Italy would require much larger sums, according to analysts.

The Spanish economy accounts for 12% of economic output among the 16-member bloc – equivalent to twice that of Ireland, Portugal and Greece combined.

Last week, Spain unveiled a fresh round of austerity measures in an attempt to trim the country’s deficit down to 3% of GDP in the next four years.

Many other euro zone nations have introduced similar measures.

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