Spain needs no sovereign bailout: German minister

Fri Sep 21, 2012 11:23am EDT
 
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BERLIN (Reuters) - German Finance Minister Wolfgang Schaeuble said on Friday that Spain did not need a sovereign bailout on top of the package already agreed for its banks because it was on the right path to regain the confidence of markets.

"Spain needs no program because it is doing the right thing and will be successful," he told foreign correspondents in Berlin. "What Spain needs is the confidence of financial markets and that is where Spain has real problems."

Schaeuble dismissed as "dangerous" the idea of giving Spain the full 100 billion euros earmarked for the recapitalization of its banks if it needs less than that amount.

Regarding Greece, the minister said nobody in the euro zone wanted it to leave the currency bloc but Athens had to prove to the "troika" of international inspectors that it was sticking to the terms of its second international rescue package.

Stressing that it had been "very difficult" to convince European leaders to give Greece another bailout, Schaeuble said: "Nobody wants Greece to leave the euro, but the question is whether it has met the conditions of its second aid program."

(Reporting by Noah Barkin and Stephen Brown)

 
President of Eurogroup Jean-Claude Juncker (L) speaks with German Finance Minister Wolfgang Schaeuble at the EU Informal Economic and Financial Affairs Council (ECOFIN) Meeting in Nicosia, Cyprus September 14, 2012. REUTERS/Andreas Manolis