Spain seeks eurozone bailout / Rajoy defends ‘victory’ for EU credibility / Doubt clouds robust Spain bailout

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Series Details 11.6.12
Publication Date 11/06/2012
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It was announced on the 9 June 2012 that Spain was to seek EU aid to rescue its struggling financial sector, in a bailout that would impose no new economic reform conditions on Madrid other than existing EU budget rules.

After months of denials by Spanish leaders that the country needed a bailout, it fell to Luis de Guindos, the economy minister, to declare in Madrid 'the government of Spain declares its intention to request European financing' for its banking system.

The decision to seek aid was reached less than 24 hours after the IMF issued a 77-page report on the Spanish banking sector that found it was suffering through a crisis 'unprecedented in its modern history'.

The core of Spain’s financial sector is well managed and appears resilient to further shocks, but important vulnerabilities remain in the system, the International Monetary Fund (IMF) said in its Financial Sector Assessment Program (FSAP) review of Spain, published on the 7 June 2012.

Related Links
ESO: Background information: Europe weighs up limited Spanish rescue / Spanish government no longer in denial / Spain poised to seek bailout
EL Pais, 10.6.12: Rajoy: “Without our reforms, the kingdom would have been intervened”
EL Pais, 10.6.12: Spain accepts bank bailout
Deutsche Welle, 10.6.12: World exhales as eurogroup aids Spain's banks,,16012629,00.html
France24, 10.6.12: Spanish premier hails €100 billion eurozone lifeline
European Commission: RAPID: MEMO/12/436: Statement by the President of the European Commission Jose Manuel Barroso and Vice-President Oli Rehn on Spain
BBC News, 10.6.12: Spain's Rajoy hails bank rescue as 'victory for euro'
EUObserver, 9.6.12: Eurozone agrees up to €100bn bail-out for Spain's banks
IMF: Press Release, 9.6.12: IMF Managing Director Welcomes Eurogroup Commitment to Financially Assist Spain in its Efforts to Strengthen its Banking Sector
IMF: Press Release, 8.6.12: IMF Says Spain’s Core Financial System is Resilient, but Important Vulnerabilities Remain
IMF: Country Report, No.137, 2012: Spain - Financial System Stability Assessment
EurActiv, 11.6.12: Spain joins ‘the Group of Debt’
EUObserver, 11.6.12: Spanish rescue pleases markets, but doubts remain
De Volkskrant / Les Echos / Die Welt / Diário Económico / Corriere della Sera, 11.6.12: Relief and concern in Europe (via PressEurop)
EL Pais, 10.5.12: Rajoy wins first round of euro-poker (via PressEurop)
Deutsche Welle, 11.6.12: Eurozone slips into transfer union on Spanish morass,,16015078,00.html
BBC News, 11.6.12: Spanish banks deal: Market concerns remain
EL Pais, 11.6.12: The “men in black” coming to Spain after bank rescue
Spiegel Online International, 11.6.12: Spain Bailout 'Won't Buoy Sentiment for Long'
EUObserver. 12.6.12: EU monitors heading to Madrid, despite 'Men in Black' claims
Jornal de Negócios, 12.6.12: Everyone has been lying (via PressEurop)
E!Sharp, June 2012; Final destination?

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