Bloomberg News

Euro Breakup ‘Can’t Be on the Table,’ Spain’s Salgado Says

September 20, 2011

(Updates with additional comments in second paragraph. See EXT4 <GO> for more on the European debt crisis.)

Sept. 20 (Bloomberg) -- Spanish Finance Minister Elena Salgado said a breakup of the euro area shouldn’t even be discussed, when urging governments to help Greece.

“That possibility can’t be on the table,” Salgado told Antena 3 television in an interview broadcast today in Madrid. “We all have to do everything possible so that Greece can solve its problems.”

European leaders are struggling to contain the region’s sovereign-debt crisis from spreading to larger nations more than a year after Greece received its first bailout. About a quarter of investors expect the 17-member euro area to break up, Barclays Capital said yesterday, citing a client survey.

The European Central Bank early last month started buying Spanish and Italian bonds to stem rising yields and Spain’s 10- year borrowing costs have since fallen around 70 basis points to 5.34 percent today. Salgado said the bank’s aim is to prevent secondary-market bond prices “falling below what would be reasonable, taking into account the situation of each country.”

--Editors: Simone Meier, Fergal O’Brien

To contact the reporter on this story: Emma Ross-Thomas in Madrid at erossthomas@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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