France and Spain have come together to urge EU leaders to pledge their support for the creation of a eurozone bank, with the latter eager for its proposed rescue plan to be put forward as soon as possible.
In a joint statement, Spain’s economy minister Luis de Guindos and France’s finance minister Pierre Moscovici said that they believe the creation of a single supervisory bank will generate the kind of stability that is needed to finally get the continent out its prolonged period of inertia.
They added: “This supervisory mechanism will open the way for direct recapitalisations with appropriate conditionality.”
In addition to that, the two European countries, showing solidarity, are eager for the agreed loan to be swiftly finalised, expressing concern that the unnecessary delay will result in a full bailout, which no one wants.
“The swift implementation of the financial assistance programme is essential to restore confidence and recreate conditions for growth,” Mr Moscovici and Mr Guindos iterated.
“We believe that the current level of interest rates prevailing in the sovereign debt markets does not reflect the fundamentals of the Spanish economy, its growth potential and the sustainability of its public debt.”
British professionals moving overseas will be interested to hear that this is considered less of a rescue, so to speak, and more about restoring balance and reducing the financial burden that is hampering Spain from moving ahead.
Spain therefore remains confident that it will not need any further financial assistance from the international community to mend its public finances.
What would help reduce current borrowing costs, Spanish leaders have said, is if the European Central Bank recommences the large-scale acquisition of government bonds on secondary markets.
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