Spanish bailout request is not imminent, at least it seems so after the short “no” Prime Minister Mariano Rajoy said Tuesday.
Nevertheless, analysts and economists are forecasting that the formal request will come this month. Whether or not Spain asks this week or the week after, or this month, it doesn`t matter as the markets are sure that it will come.
Nicholas Spiro, managing director at Spiro Sovereign Strategy said that the Spanish government is chasing “a constantly moving target” and added that “Spanish politicians could be forgiven for thinking: ‘With friends like these, we don't need enemies’.”
At the press-conference following a meeting with regional leaders, Rajoy announced that in spite of some misunderstanding the leaders of all 17 Spanish territories reiterated their commitment to meeting budget targets, with its budget cuts.
Spain has pledged to reduce its deficit below the 3%-of-GDP limit for EU countries by 2014.