THE European Union and the Spanish government have denied that an economic rescue package is imminent.
Reports in the German media claimed that Spain’s economy is teetering on the brink of collapse.
Frankfurter Allgemeine Zeitung (FAZ) newspaper reported that the Spanish government is set to ask for a multi-billion euro bailout package.
However, the European Commission President, Jose Manuel Barroso, denied this was the case.
“The European Union isn’t preparing to give financial aid to Spain,” he insisted.
“We will lead discussions this week in Brussels concerning the crisis.”
Barroso explained that fiscal consolidation and other reforms are necessary for economic growth.
And the Secretary of State for Spain’s treasury, Carlos Ocana, maintained that the worrying reports were false.
The FAZ had quoted German government insiders talking about the alleged big-money salvage bid.
“We will lead discussions this week in Brussels concerning the crisis,” said the source.
“It has intensified to the point that the states do not want to wait until the EU summit on Thursday in Brussels.”
But European Union economic spokesperson Amadeu Altafaj also roundly rejected the reports.
“There is no truth in this whatsoever,” affirmed Altafaj. “I categorically refute these claims, it is very strange that a country like Germany is making such assertions.”