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SPAIN’S PRIME MINISTER has hailed the Spanish bailout as a victory for his country and the eurozone.
Speaking at a press conference today, Mariano Rajoy said that during yesterday’s eurogroup meeting he “won the credibility of the European project” and ensured the future of the euro. He described the possible loans of up to €100 billion as a reopening of a credit line, rather than a bailout.
He said the money given by the EFSF or ESM will allow for a “re-flow of credit to households, entrepreneurs, small and medium enterprises, workers and freelancers”, which will ultimately create jobs.
Spain’s unemployment rate, at 24.3 per cent, is the highest in Europe and youth unemployment has hit a massive 51.5 per cent.
Rajoy claimed that yesterday’s decision to seek financial aid for the ailing banking sector is part of a “global plan of reorganisation of the Spanish economy…to restore growth and, above all, create jobs”.
He added that, despite the lifeline, Spain’s economic situation remains “very sensitive” and continued reforms and a clean-up of the financial system are necessary.
The Prime Minister thanked the Spanish public for its “exemplary behaviour and maturity” in the recovery process, noting that credibility, image and reputation are vital to the economy. He promised that the government knows what it needs to do and what decision should be taken to restore growth and jobs.
The government insists that Spain was not pressured into taking financial aid – a move that has been welcomed by European leaders, the US, the IMF and Ireland. “But it was I who pressured for a line of credit,” claimed Rajoy. Any possibility of a rescue loan was flatly denied by the PM just two weeks ago. However, he would not concede that yesterday’s announcement was a U-turn.
He talked of a Spanish victory – that if Spain had not earned the credibility of its international partners over the past five months with its reform processes, then yesterday would have marked a bailout of the Kingdom of Spain, and not just an “opening of a European credit line to regain solvency of Spanish banks that need it”.
The government has also highlighted that no package of austerity comes attached to the rescue package – as it has in other programme countries such as Ireland, Greece and Portugal – because the full amount will be directed towards the country’s banks, not the sovereign.
Within Spain’s own press, there seemed to be relief that help was eventually sought and that the government had stopped denying it needed aid.
However, most of the daily newspapers noted that no austerity was being imposed on the Spanish people as a result of the loans. Quite a stark difference to the reaction to Ireland’s bailout in October 2010.
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Not to worry. When we have finished lapping up our “austerity” and a quarter of our working adults, and half of our youth, are reduced to subsistence incomes we too shall have “won the credibility of the European project” and will be entitled to borrow money with no strings attached.
Oh joyous days, how soon shall they come?? WE LOVE YOU EUROPEAN UNION!!!!
That’s sarcasm.
The only winners in all of this are the banksters
The Spanish don’t have the guts for austerity like we do. We have a strong Celtic spirit, unlike the Latin countries which are a bunch of cowardly weaklings. Man up and bring on the austerity I say!
Bail out the banks at all costs. Not one cent will go for job creation. Same story here. The banks have been bailed out but feck all line of credit available. There is no way Ireland should have bank debt as sovereign debt.That should be removed pronto.
Ole ole ole ole, Olli rehn told me so
If this is a win.
I wouldn’t like to see what a lose looks like?
You living in a lose
Living in a loo?
He said the money given by the EFSF or ESM will allow for a “re-flow of credit to households, entrepreneurs, small and medium enterprises, workers and freelancers”, which will ultimately create jobs…….. Now where have i heard this before……
The Spanish people will suffer because of this. The same Spanish people that are getting evicted from their houses at the rate of 160 families a day by the banks.
Its only a victory for the banksters.
How in God’s name can it be considered a win if someone lends you money and then wants it back with interest? Politicians in all countries of the world come up with the strangest sh!t sometimes and our country is no different!
It’s called propaganda Dave, this is how governments keep the populations peaceful, if people really knew what was going on over their heads, there is no way a government could hold power, so they make comforting suggestions, everything is going as planned, don’t worry, soft landing, we won’t be needing a bailout, this is a win for us etc. etc.
If you want to know the truth basically turn all their statements on their head. We don’t know what we’re doing, be concerned, crash imminent, we’re bankrupt, we’ve blown it ….
Spain won, hope it’s not the same on the football
Rajoy’s Charlie Sheen moment. What’s next in this train wreck?
Spain is winning!!
I just chopped off my right arm, hey I’m winning!!
What’s next. Complete melt down of financial system. Absolute panic and mayhem and the technocrats coming to our rescue with a One world bank (or government in political speak) to control your every waking whim. Congrats YES voters. You had better start practicing your denials now. “Glad I didn’t vote Yes” etc. I’ve said it before. Ireland will have many advantages to mainland Europe. Good island for refugees criminals nuclear plants or whatever you are told is good for you.
Yeah – Monday morning should be interesting.
I wonder was the low-level-coverage of the bailout to stop an ATM run.
It looks like that is what will happen. Spain, the 12th largest economy in the world is bankrupt and the austerity and cuts are tearing the fabric of its society and economy apart. Unemployment is expected to hit 30% this year.
they are the winners..we are the losers :-(
They don’t know what’s to come!
I say fair play to Spain getting a loan without Austerity attached, not to mention thanking the spanish for their patients, if they got thanked our Government should be on it’s knees thanking us fools…..
have your say