Spain’s conservative Popular Party which won election victory last Sunday and is due to form a new government by mid-December, has strongly denied reports that it is already considering applying for international aid to shore up Spain’s finances.
By Fiona Govan, Madrid
8:49PM GMT 26 Nov 2011
“It is categorically not true,” said a spokesman from the party, which is led by Mariano Rajoy. The spokesman was commenting on a report by Reuters on Friday that the PP had discussed plans to seek a rescue package.
“I don’t believe the decision [to seek aid] has been made … but it is one of the options on the table, because I’ve been asked about it. But we need more time and more information on the current state of things,” one source close to the PP told Reuters.
“If we have to do it, we have to do it now,” the source said.
Analysts have suggested that Spain will request funding from either the European Financial Stability Facility or the International Monetary Fund to avoid the country becoming the next victim of the euro debt crisis.
One of Mr Rajoy’s deputies insisted that such discussions were not on the table.
“To begin with no future government has been decided only a future president,” the source told Carmen Remírez de Ganuza, of the El Mundo newspaper.
The prime minister-elect, Mr Rajoy, has inherited an economy crippled by the highest unemployment rate in Europe – at 22pc – and a second recession looming.