The results of stress tests on Spanish banks will be revealed at 5pm, and the rumour on the trading floor is that the country may also announce that it is asking for a bailout at the same time. Yesterday’s budget caused the markets to rally amid hopes that the country was preparing to ask for help, with economy minister Luis De Guindos increasing speculation by repeatedly pointing to the fact that the measures announced met requirements from the European Union. EU Economic and Monetary Affairs Commissioner Olli Rehn agreed with the minister, issuing a statement saying:
‘This new structural reform plan responds to the country-specific recommendations issued to Spain and goes even beyond them in some areas. The reforms are clearly targeted at some of the most pressing policy challenges.’
Meanwhile Spain’s former deputy finance minister Joe Manuel Campa has given an interview to Bloomberg saying the country is in a better position to request help now that financial markets are exerting less pressure.
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