MADRID (AP) — Spanish Prime Minister Mariano Rajoy has said he would consider asking for financial aid for his country only once the European Central bank has fleshed out its crisis-fighting plans for buying government bonds.
A day earlier, the ECB warned it would only help lower a country's borrowing costs if that country's government applied for rescue aid from the bailout funds set up by the 17 euro countries.
Spain borrowing costs are high due to concern over the country's ability to cover huge losses in its banking sector and big debts among regional governments.
With the ECB's role in helping Spain still uncertain, the government said Friday it had submitted to the European Commission a document outlining its spending cuts and revenue increases through 2014.
Greece, Ireland, Portugal and Cyprus have already sought bailouts but a Spanish sovereign rescue package would seriously test the European Union's coffers as it is the fourth largest economy of the 17 nations using the single euro currency.
[...] many of its 17 regional governments are now starting to run out of money while austerity measures and labor reforms brought in to try to calm financial markets and appease EU partners are stifling the economy.
A day earlier, the ECB warned it would only help lower a country's borrowing costs if that country's government applied for rescue aid from the bailout funds set up by the 17 euro countries.
Spain borrowing costs are high due to concern over the country's ability to cover huge losses in its banking sector and big debts among regional governments.
With the ECB's role in helping Spain still uncertain, the government said Friday it had submitted to the European Commission a document outlining its spending cuts and revenue increases through 2014.
Greece, Ireland, Portugal and Cyprus have already sought bailouts but a Spanish sovereign rescue package would seriously test the European Union's coffers as it is the fourth largest economy of the 17 nations using the single euro currency.
[...] many of its 17 regional governments are now starting to run out of money while austerity measures and labor reforms brought in to try to calm financial markets and appease EU partners are stifling the economy.
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