Brussels, 10/09/2012 (Agence Europe) - The European Commission believes that Spain would not have to introduce any new macroeconomic reforms or austerity measures on top of those already introduced if it were to make an official request for aid from the eurozone bailout funds backed by the ECB's new bond purchase programme in order to bring down the cost of rolling over its debt. On Monday 10 September, EU Competition Commissioner Joaquin Almunia said that it was true that there would be conditions because any draft agreement comes with conditions, but if such an agreement were reached, then the conditions would be different from the ones seen to date. He said the measures to be included in a Memorandum of Understanding (loan agreement) with Spain would have more detailed introduction and implementation requirements. On CNBC at the weekend, Euro Commissioner Olli Rehn said that very country-specific targets would be set, based on the recommendations to Spain made by the European Summit in June.
These country-specific recommendations cover (see EUROPE 10681) a) reducing the public deficit to 3% in 2014 by applying a financial stability programme (reform of the pension system and changes to the budget and taxation); b) bank reforms (housing reforms and making it easier for small companies to access finance); c) structural reforms (like making grid and network industries more flexible, making services more competitive, reforming public services and backing innovation); and d) labour market (getting more people into work, changing the education system and the state intervention policy for the labour market). No dates have yet been set for passing and introducing the said measures. (MB/transl.fl)