German ruling coalition demonstrated its annoyance to Spain when Chancellor Angela Merkel told that Prime Minister Mariano Rajoy must stop turning aside and determine if the country needs a full bailout.
According to many analysts, the fact that Spain is trying to postpone such vital decision makes it more difficult to fight against European crisis. In addition, this issue arose amid disagreements in banking union and never-ending negotiations in Greece on countries’ liabilities.
German patience is coming to an end. Spain is losing time after the ECB president Draghi suggested help in lowering costs of borrowing in exchange to austerity measures. Prime Minister Mariano Rajoy is unwilling to seek for additional help after Draghi disclosed the ECB’s bond purchase program which stipulates some conditions for the beneficiary countries. Spanish deputy prime minister Soraya Saenz de Santamaria announced last week that Spain will consider the rescue plan if the liabilities are reasonable.
However, last Thursday Spanish government disclosed its next measures for government spending and budget deficit reduction.
According to these measures, the deficit will be reduced to 4.5% GDP in 2013 while it was 6.3% in this year. Such circumstances led to many riots among the citizens which took place last week.