De Guindos insists bailout not an option

Luis de Guindos - Economy Minister (photo: lamoncloa.es)

A busy day of fire-fighting for Economy Minister Luis de Guindos, who has given a radio interview this evening in which he ruled out the possibility of Spain needing a bailout. After more wobbles for the Spanish economy today, de Guindos said this evening:

“We have not asked for [a bailout] – it is not on the table.”

He later added that a bailout would be the “worst outcome possible” and that it would be “a last resort”.

“Spain cannot lose it autonomy with regard to economic matters,” he concluded.

He also reiterated his earlier claim that Spain’s biggest problem is the uncertainty about the finances of the heavily indebted Autonomous Communities.

With regard to today’s news on the risk premium, de Guindos was quick to point out that Spain is not alone, and that other eurozone countries, notably Italy, also saw their risk premium rise today.

He also downplayed President Sarkoy’s earlier comments on Spain and Greece, saying that they were clearly meant as a critique of the social-democrat politicians which until recently governed in both countries.

The full interview can be listened to here (in Spanish)

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