Spanish minister knelt and prayed.
"The Spanish government declares its intention to seek European support for the recapitalization of its banks," declared Minister Luis de Guindos at the press conference where he announced the request for assistance.
247 - Spanish authorities resisted as much as possible, but complied with the decision of German Chancellor Angela Merkel. They only received help because they asked for it. "The Spanish government declares its intention to seek European support for the recapitalization of its banks," declared Minister Luis de Guindos at the press conference where he announced the request for assistance.
The decision contradicts the campaign promise of Spanish Prime Minister Mariano Rajoy, who, just seven months ago, vowed to solve the problems of his country's banks without resorting to an international bailout. Rajoy, incidentally, continues to avoid the word bailout. With the US$126 billion aid to Madrid, equivalent to 100 billion euros, the amount provided by the European Central Bank to four countries has now reached US$480 billion: Portugal, Ireland, Greece and, now, Spain.
In his press conference, Minister Luis de Guindos assured that no new financial austerity measures will be necessary. Spanish banks that received aid will have to reduce the perks of their executives and their dividend policies. Last week, with King Juan Carlos in attendance, Santander suggested to President Dilma Rousseff that Banco do Brasil buy 10% of its shares. Dilma vetoed this because she is not in favor of the National Treasury being associated with the Spanish crisis.