EU agrees to Spanish bailout: A recipe for a disaster, not for salvation.
EU agrees to Spanish bailout -
Mark Weisbrot – co-director of the Center for Economic and Policy Research in Washington DC says that there is a high risk Europe will face yet another crisis. And though the IMF appears to foresee this, Weisbrot insists the fund’s rescue efforts for the EU are a recipe for a disaster, not for salvation.
Spain said it would accept the generous offer, but refrained from providing an exact sum of its needs until after two independent consultancies – Oliver Wyman and Roland Berger – finish their audit of the country's banking sector next week.
“The Spanish government states its intention to request European financing for the recapitalization of banks that need it,” Spanish Economy Minister Luis De Guinos told a press conference.
He noted that Spain would request money that was sufficient for recapitalization, plus a safety margin that would be “significant.”
De Guinos also stressed that the money would be going to the finance sector only, and would hence not be conditional on the government implementing new austerity measures.