Spanish PM defiant over bailout conditions

SPAIN’S Prime Minister Mariano Rajoy has said he will not accept a bailout if it comes with demands to impose further spending cuts or tax rises.

In his first TV interview since being elected last year, Rajoy insisted he expected the EU to set reasonable conditions were Spain to request a rescue package.

Eurozone and EU finance ministers are set to meet on Friday to discuss the terms of the agreement, although Spain is not likely to make an application for a bailout until after regional elections on October 21.

“I am absolutely convinced that everyone will be reasonable but I insist that we haven’t taken a decision,” Rajoy said.

“I will look at the conditions. I would not like, and I could not accept, being told which were the concrete policies where we had to cut.”

He added that the one area he would not touch was pensions ‘because the pensioner is the most fragile person’.

Spain has already received aid of up to €100 billion from the eurozone to help it shore up its struggling banks but will not request further funding without confirmation of the conditions attached.