Spain 'should not rely on ECB bailout'

19 April 2012

Spain should react to recent economic indicators by taking full responsibility for its economic crisis.

That is the opinion of Jens Weidmann, policymaker at the European Central Bank (ECB), who believes the country's officials should use the recent hike in its bond yields as an incentive to combat the root causes of its debt.

Earlier this week, the yield on ten-year Spanish bonds rose above six per cent - a trend that has heightened fears among financial analysts that the struggling nation will have to seek a bailout sooner rather than later.

However, in an interview with Reuters, Mr Weidmann - who is also head of the German Bundesbank - called on Mariano Rajoy and his administration to avoid reliance on the ECB.

"That is also a spur for policymakers in the countries concerned to do their homework and to win back market confidence," he added.

By Gary Cooper

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