Market analysts said Spain
might call for help within days to stabilise its public finances, but European
officials cast doubt on that Tuesday, saying that key players were still far
from agreement.
Rajoy appeared to imply the
same when, asked at a news conference whether a bailout demand by Spain was
"imminent", he replied: "No," without elaborating.
The conservative leader, known
for keeping his cards close to his chest at the best of times, shrugged off
media reports that his government was set to formally request a bailout as soon
as this weekend.
"I cannot be replying to
leaks every day," he said. "But if you think what I have to say is
more important than a leak, then I say no."
Spain is required to make a
formal demand for help in order to trigger the release of eurozone rescue funds
and supportive action by the European Central Bank.
In the past week, Spain has
unveiled an austerity budget for 2013 and revealed a lower-than-expected price
tag for saving its banking system, two moves considered likely to clear the way
for a full bailout.
Rajoy passed the tough budget
measures in the face of mass street protests, under pressure from European
authorities to cut Spain's deficit and restructure its economy.
The European Union's economic
commissioner Olli Rehn said after meeting with Rajoy on Monday that Spain's
reforms were "on track" and Europe "stands ready to act in case
there is a request".
But European officials told AFP
on Tuesday that the other key players were far from closing in on an agreement.
They said this made it unlikely
that an announcement would come by the time the Eurogroup of eurozone finance
ministers meet on October 8, and maybe not even in time for a full EU summit on
October 28-29.
"There is a debate over
the timing," one European diplomat said. "The question is whether it
is the best solution for Spain to make its request now."
Other diplomats said the
decision was being delayed due to the reticence of countries including Germany,
whose government is obliged to get approval from parliament before supporting a
bailout programme.
To reduce the hazards of this
process, Germany is considering presenting a Spanish demand to parliament in a
package along with potential programmes for Cyprus and Greece, officials in
Brussels said.
One diplomat said that idea
emerged after Germany, Finland and The Netherlands toughened their line last
week on agreements for bailing out troubled banks, and the issue could be
discussed by the ministers on October 8.
Given the reticence of certain
countries, "the timing is unclear, but the October summit is too
soon" to expect a bailout request from Spain, said one diplomat.
Rajoy has held off a decision
over the past month as the rates of return on Spain's bonds, a key indicator of
confidence that helps determine how easy it is for a country to finance itself,
eased after supportive comments from the European Central Bank.
His hesitation made them creep
up again last week but they eased again on Tuesday.
"We do not have clear signals"
about when Spain may make a bailout demand, said a European official who asked
not to be identified.
"We do not think that a
very convincing case can be made for a demand for aid by Spain while the
country is managing to finance itself on the markets."
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