European officials will move to prevent Spain from triggering a new round of convulsions, as policy-makers begin preparing for a summit next week aimed at easing the region's three-year-old debt crisis.
A month after European Central Bank President Mario Draghi unveiled a plan to gain the upper hand through central bank bond purchases, handing the burden of crisis resolution over to European governments, leaders have yet to agree on a blueprint for rescue conditions and centralised bank supervision.
European officials who expressed optimism at the ECB’s summer plan to fix the crisis have grown uneasy at Spain’s hesitation to set it in motion by requesting aid, a condition that Draghi insists on. Spain’s Rajoy has said his government is considering a request, while damping speculation that it will come soon. Spain has local elections this month and next.
Deputy Prime Minister Soraya Saenz de Santamaria said that the country had refrained from seeking aid because of concern about how, and even whether, a programme would work. “We need to have all the elements on the table and also the certainty that it would materialise” before making a bailout request, Saenz said.
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