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'No worries on Spain'

FRENCH Budget Minister Valerie Pecresse said that market fears over Spain's finances were "excessive".

Spain does not need a bailout or outside financial help to recapitalise its banks, the European Commission said.

This is despite surging borrowing costs which are fuelling fears that Madrid may need help.

When asked if the commission still stands by its assessment that Spain does not need a bailout to recapitalise struggling banks, spokesman Olivier Bailly told a news briefing: "Yes we do."

Spain was praised for its efforts to reduce its public deficit and its levels of debt.