Is the EC pushing Spain towards a bailout?

[C. Flower]

German says no to ECB bond buying.

http://www.irishtimes.com/newspaper/...reaking13.html

[PaddyJoe]

Interesting article in the irish times today by paddy woodsworth about the catalan situation with spain. He debates whether it catalan calls for a bailout is just a ploy to achieve fiscal autonomy or they actually are just in a really bad situation. He seems to favour the latter but i have a feeling he is coming from a 'madrid centred position', mainly because he calls the call for fiscal autonomy 'controversial' when it is supported by every catalan party across the board (but not in madrid obviously) and then goes on to translate the catalan presidents name to spanish. Good one paddy

Anyway the article is good but i dont support his claim that the catalan position is contradictory. He says that claims for fiscal autonomy is contradictory to admission that they depend on madrid for economic survival. Indeed it seems the most rational position because if they had fiscal autonomy they would have loads more income (25%+) which would go a long way to solving their liquidity crisis.

Anyway, ye can judge for yourselves.

http://www.irishtimes.com/newspaper/...320880925.html

There's a lot of posturing going on between Barcelona and Madrid. I see the Catalans didn't turn up for an important meeting today chaired by Finance Minister Montoro which was called to set the financial targets for the regions.

[Holly]

So Catalonia is asking for a rescue from the right-wing government in Madrid. So much for autonomy.

[PaddyJoe]

This is not going to turn out well:

In Barcelona on Tuesday, the Catalan government said cashflow difficulties meant it would not pay subsidies in July to hospitals, old-age homes and other social services already reeling from sharp budget cuts.

Catalonia has said it could tap a fund in Madrid designed to smooth regional governmental spending fluctuations.

Another EU source who could not be named said the institutions in Brussels were Prime Minister Mariano Rajoy's "best ally" in a bid to squeeze spending in the increasingly boisterous "autonomias."

http://www.eubusiness.com/news-eu/fi...debt-spain.hy0

[Ogiol]

I mean, what the fek is 'boisterous' meant to mean in that context. Does it imply that the autonomias are little children on a spending sugar high?? Such an ignorant position.

Lets put the record straight to the eurocrat. Catalonia (unfortunately -right wing fekers) has cut the bejaysus out of social services, much more than the central government. Boisterous indeed, but of the cut cut cutting variety.

Interesting the plantón from the catalans today. Andalucia is also very against the plans and made a point of it. I believe that the catalans are hoping for the thing to collapse in order to be able to point the finger at madrid and thus get everyone behind the Generalitat, be it for fiscal autonomy or full independence. Interesting times

[ang]

Interesting the plantón from the catalans today. Andalucia is also very against the plans and made a point of it. I believe that the catalans are hoping for the thing to collapse in order to be able to point the finger at madrid and thus get everyone behind the Generalitat, be it for fiscal autonomy or full independence. Interesting times

Indeed. Andalusia are heading for the Courts -

Owen Callan
*SPAIN DEBT RULES MEAN ANDALUSIA HAS TO CUT DEBT EU2.7B IN 2013, ANDALUSIA WILL CHALLENGE RULES IN COURT - oh, this will end well...

[Holly]

The Spanish can give the Germans a fright by cutting back on policing the borders, allowing Africans into the European Union with a porous frontier just like Greece. After all, if there are not the funds for the Guardia Civil, something's gotta give.

[DCon]

Draghi said today that the ECB can only help Spain and Italy after they have entered an official programme

Spanish yields back over 7%

[MPB]

Draghi said today that the ECB can only help Spain and Italy after they have entered an official programme

Spanish yields back over 7%

So he is not prepared to do whatever it takes.

Draghi is just another Goldman Sachs gimp. The sooner the better the stupid politicians realise that Central Banking is the problem.

That is assuming that the Bankers have,nt already bought all of the important politicians.

[DCon]

Draghi said today that the ECB can only help Spain and Italy after they have entered an official programme

Spanish yields back over 7%

Draghi may have forced Spain's hand

There’s buzz about that the Spanish government is going to hold an unscheduled conference in which Spain will ask for official support from the EFSF,

http://www.forexlive.com/blog/2012/0...ss-conference/

[C. Flower]

Draghi may have forced Spain's hand

http://www.forexlive.com/blog/2012/0...ss-conference/

Italy next ?

[DCon]

Rajoy doing a Presser at the moment

zerohedge ‏@zerohedge

Rajoy Says Govt Knows What It Has to Do, Will Continue Reforms. So no bailout request.

zerohedge ‏@zerohedge

RAJOY: I WILL DO WHAT IS IN INTERESTS OF SPANIARDS

[PaddyJoe]

Rajoy doing a Presser at the moment

Significant that Rajoy several times referred to the peseta value of figures he mentioned during the press conference. Dropping a broad hint that Spain has a Plan B if pushed too hard.

[DCon]

From the Indo

SPAIN inched closer to seeking a sovereign bailout today as Prime Minister Mariano Rajoy opened the door to a request, although he said he needed first to know the attached conditions as well as the form the rescue would take.

At a news conference on Friday, the first he has attended after the weekly cabinet meeting since he took power in December, Mr Rajoy said no decision could be taken until further details are agreed.

But he said he was ready to do what is best for the country.

"What I want to know is what these measures are, what they mean and whether they are appropriate and, in light of the circumstances, we will make a decision, but I have still not taken any decision," he said.

http://www.independent.ie/business/e...t-3188865.html

[Ephilant]

ANSA, the Italian news agency reports a special meeting of the EuroGroup called by J.C. Juncker for Sept. 3rd to discuss the problem of Greece AND SPAIN.
Junckers is to visit Athens on August 22nd for a face to face meeting with Samaras, who will then take of on a tour of Europe to persuade his colleagues in Europe that Greece is really, really, really going to stick to the letter of the MoU AND deliver. Scouts honour. And while he's at it, he will try and persuade the lenders to accept some "alternative measures" to the ones outlined in the MoU and an extension of 2 years to the whole deal.... The Troika has already been told to say "Nein", so, fat chance Antonis.
Meanwhile Rajoy is doing what is best for Spain at an initial cost of 103 billion. Not too sure who in Spain this is best for? I somehow doubt that Pedro down the mineshaft is going to be happy with "what is best for Spain".
It is also being strongly rumoured the meeting will have an indepth discussion on Italy as well. Purely precautionary of course.