It seems that it’s not likely that ECB will buy Spanish debt – Mr. Rajoy, Spanish Prime Minister, on Friday said that Spain will consider asking for aid from the euro-zone bailout fund, though, perhaps not imminent (Well, they have to get money for the large debt redemptions in October…) Spanish government then needs to submit to strict conditions, if they decide to accept the aid from the fund. Think they are on the right track if they want to continue the euro-zone and maximize its benefits. At this moment the first task should be the coordination of different fiscal policies existing in euro-zone countries… at least, in order to lower down the borrowing cost, Spanish government is carrying out reforms demanded by the EU. That’s the first step.
On 24the of August, the Spanish government will clarify much details of the decision regarding accepting the banking-sector bailout. ECB will detail how its bond purchase will work and announce other anticrisis measures in the coming weeks.
