WSJ: Spain aid hits obstacles

17 October 2012

A potential Spanish request for financial aid is becoming caught up in tangled diplomacy between eurozone capitals, despite Madrid's new willingness to push ahead.

A day after a senior Spanish official told reporters that German concerns were preventing Madrid from seeking assistance, German officials insisted Spain hadn't indicated it wants aid. Italy, meanwhile, continued to urge Spain to apply for help in the hope that the step would ease market pressure on its own bonds. Germany worries that a request may have the opposite effect, by fanning investor fears that Italy will be next in line to need a bailout.

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