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October 02, 2012 at 05:42 AM
Just when it seems that Spain has made up its mind at last to ask for a bailout for its banks, Germany is said to be pushing Madrid to wait. To top it off, Moody’s Investors Service said that Spanish banks will need almost twice the amount of funding the country quantified just last week.
Reuters reported Tuesday that although some other eurozone countries are pressing Spain to ask for help from a new European Central Bank (ECB) bond-buying program, Germany is said by European officials to be urging delay. Madrid was said by European officials to have changed its stance on asking for funds for its banks, and to be prepared to request aid as early as this weekend, but Germany is stepping on the brakes.
Four different unidentified European officials have confirmed that Spain has come to terms with the idea of asking for help, with one saying in the report, “The Spanish were a bit hesitant but now they are ready to request aid.”
However, Germany is not ready, according to several European diplomats and a senior German source who were cited in the report. The German source said that Chancellor Angela Merkel hoped not to have to bring bailout requests one at a time to a Parliament that has become increasingly hostile to the idea.
“It doesn’t make sense to send looming decisions on Greece, Cyprus and possibly also Spain to the Bundestag one by one,” the senior German source said. “Bundling these together makes sense, due to the substance and also politically.”
