Il spokesperson for European Commission Vice-President Olli Rehn spoke today on the request by the Spain of an aid plan in favor of its banks. He did so in a meeting with the press, stating that “obviously iThe aid plan will have an impact on public debt” and which, as regards the budget deficit “should be the subject of an analysis by Eurostat-
The Spanish government will also have to sign, again according to Olli Rehn's spokesman, a "memorandum of understanding" on the aid it intends to request and that the plan will be subject to "conditionality focused on the financial sector".
According to the European Union, however, the Spanish government's announcement marks an "important contribution to the protection of the country's financial stability" and of the entire Eurozone, since "it will serve to reassure its citizens", restoring confidence and improving access to credit in order to "provide new fuel to the recovery".
