Spain: De Guindos "would like to see the ECB commit to massive, open-ended sovereign-debt purchases" (WSJ)
In the meantime, the Spanish economy minister "would like to see the European Central Bank commit to massive, open-ended sovereign-debt purchases before it asks for help financing itself". Between what the ECB can do and what the Spanish Government "would like", there is the text of the Treaty of Lisbon.
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"The Spanish government would like to see the European Central Bank commit to massive, open-ended sovereign-debt purchases before it asks for help financing itself, Finance Minister Luis de Guindos said, as expectations mount that the country will ask for a new bailout. (...) The ECB "cannot place limits or say how much it will buy nor for how for how long it will intervene" in secondary sovereign-debt markets, in order to ensure the action is effective, Mr. de Guindos was quoted as saying. (...) Assuming Spain does decide to ask for a second bailout, this one to help the government finance itself, Mr. De Guindos said the conditions will likely be discussed at meetings of European finance ministers in the second week of September. The Spanish finance minister said he was optimistic that tough new budget cuts and economic overhauls won't be demanded of his country, saying Spain is already "doing its homework." Spain in recent weeks has detailed spending cuts and tax increases valued at more than €102 billion through 2014 in an effort to lower its budget deficit to 2.8% of gross domestic product that year." |
| source: Spain Seeks Big Commitment From ECB | WSJ |
