Zapatero on the Economy: I Have Confidence Based on Concrete Data
November 26th, 2010
Prime Minister Jose Luis Rodriguez Zapatero said Friday there was absolutely no chance Spain would seek a bailout.
Asked in an interview on Spain’s RAC 1 radio if he ruled out financial help from the European Union, Zapatero said “absolutely.”
He said Spain’s plans to reduce its deficit were on track and that its total debt was still 20 percent below the European average.
“The deficit reduction plan is being fulfilled scrupulously, we have one of the most solid financial systems, the savings banks are restructuring at a good rate and should be consolidated by the end of the year,” he said.
Investors have long expressed concern over Spain’s savings banks (cajas) which were heavily exposed to the Spanish real estate sector and are now saddled with a large number of foreclosed properties, from which they are currently under a consolidation process scheduled to finish next month.
Zapatero said he had asked the country’s central bank to report periodically on the health of the financial sector.
“It’s not that I’m transmitting confidence because I want to, but because of concrete data,” he said.
Zapatero said that people who suggested the country will need a bailout are not helping to calm matters.
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