Eurogroup President Jeroen Dijsselbloem assured on Monday that Spain is already on a road to recovery. He also commented on the fragile economic environment in Slovenia and Greece and on the progress in establishing rules for ESM bank recapitalization. Speaking at a conference in Madrid, Dijsselbloem praised the improvements in Spanish banks' balance sheets and suggested that the country would not require further bailout funds. He stressed that currently the most important issue was propping up the labor market by implementing further reforms. Moreover, the Eurogroup President expressed hope that Slovenia would not need a rescue program. He said that the country is prepared to address its financial sector's problems, once it receives the banks' stress test results. He also warned that Greece might face financial shortfalls this year, unless it steps up austerity efforts. As far as the regulation on the ESM bank recapitalizations is concerned, Dijsselbloem declared that it should be completed by the end of the year. He said that the upcoming stress tests would help single out the most distressed financial institutions and give them priority to raise capital on financial markets. In case that proves insufficient, the burden would partly fall on bank shareholders and bondholders.