Bloomberg News

Rajoy Says ‘Worst Has Passed’ in the Crisis Over Euro’s Future

November 19, 2012

Spanish Prime Minister Mariano Rajoy said the “worst has passed” in the crisis of confidence over the euro’s future, even as the nation continues to fight for lower borrowing costs.

“There are doubts about the irreversibility of the euro, it’s true that there were more a few months ago than today,” Rajoy told reporters today at a news conference in Madrid with Brazilian President Dilma Rousseff. “I’m totally and absolutely convinced that the worst has passed.”

Rajoy, who says he is still deciding whether to seek a bailout that would allow the European Central Bank to buy the nation’s debt, said Spain’s biggest problem is the cost of financing. Ten-year benchmark bond yields rose to 5.88 percent today, almost four months after Rajoy first said he may consider asking for help to reduce the cost of financing the euro area’s second-largest budget gap.

“The most important problem in Spain isn’t cutting the deficit, which we have to do, the most important problem is having financing for the whole economy at reasonable prices,” Rajoy said. That’s why the government is fighting for greater political and economic integration in the euro region, he said.

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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