Brussels, 28/08/2012 (Agence Europe) - Speaking in Madrid on Tuesday 28 August after his meeting with European Council President Herman Van Rompuy, Mariano Rajoy, the president of the Spanish government, denied negotiations were ongoing on a second assistance plan for Spain. Uncertainty persists, however. When asked about whether the Spanish debt would continue without a rescue plan and about the conditions that would lead to such support being given, Rajoy simply answered that everything would be done in the interest of the Spanish people.
In some respects, Van Rompuy has not dispelled the doubts. He has said that it is up to the Spanish government to take a decision on financial assistance in addition to the programme in favour of the banking sector. He pointed out that Spain has already a far-reaching restructuring programme for its banking sector.
Rajoy takes the view that single currency is irreversible, as is the European integration process. He spoke of the need to set up a banking and budgetary Union, also going on to say that it would be a collective failure for the whole of Europe if Greece were to exit the eurozone.
Bad news was announced that same day, news that could swing the scales a little more in favour of a second rescue package for Spain. The government of Catalonia has announced its plan to call for financial aid amounting to €5.023 billion from the central State, and Rajoy has pledged he will not let Catalonia down. (LC/transl.jl)