Opinion Comment

Friday 24 November 2017

Julian Toyer: Why Spain will find it hard to avoid a full bail-out despite last week’s breakthrough summit

SPANISH Prime Minister Mariano Rajoy will find it tough to avoid asking for a full-scale sovereign bailout despite steps taken at an EU summit to help the country's indebted banks and pressured borrowing costs.

Euro zone leaders agreed on Friday to let their rescue fund directly inject aid into Spanish banks from next year and buy bonds to support troubled member countries, to try and curb a regional debt crisis that threatens the single currency.

But the deal lacks details and Rajoy, who struggles at the EU negotiating table, will face long and difficult talks to finalise the rescue, while the recession deepens, the public deficit rises and one in four of the workforce has no job.

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