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29 October 2012

Reuters: Politics puts Italy, Spain back in market focus


Spanish Prime Minister Mariano Rajoy kept financial markets guessing over whether he will seek a credit line from the eurozone's rescue fund but said he would do so "when I think it is in the interests of Spain".

Italian Prime Minister Mario Monti said it was vital that the European Central Bank's bond-buying programme to support troubled states be activated, a strong hint that Spain should take the plunge, since he also said Italy did not need a bailout. "It is of paramount importance that the instrument is put to work, that it does not remain theoretical", Monti said.

Monti said earlier this month that if Spain were to request a credit line from the eurozone's rescue fund, triggering ECB intervention, it would calm financial markets.

While Rajoy maintained his ambiguity, he omitted previous demands to know more details of the ECB's bond-buying plan before making up his mind.

Full article



© Reuters


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