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Spain PM Rajoy Says Size of ESM To Be Discussed Again in March

January 31, 2012

Jan. 30 (Bloomberg) -- Spanish Prime Minister Mariano Rajoy said European leaders will discuss again in March the size of the European Stability Mechanism, and Spain wants the fund to be bigger even as it doesn’t plan to use it.

Asked whether Spain may use the mechanism to help finance an overhaul of its banks, Rajoy told reporters: “In principle, we have no intention of using the mechanism, but it’s there and available to any country that wants to use it: we don’t intend to at the moment.”

The fund’s most important role is to “dissuade” markets, and bigger the mechanism, “the better, as the dissuasory effect is greater,” he said in Brussels today.

To contact the editor responsible for this story: Emma Ross-Thomas at

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