By Emma Rowley
Spain’s prime minister said he is “battling” to get the eurozone’s central bankers to bring down the country’s record borrowing costs, amid predictions the state will need a second bail-out to save itself.
Mariano Rajoy urged the European Central Bank (ECB) to resume its massive purchases of struggling euro nations’ debt in order to bring down their borrowing costs. The programme has been suspended for months…
He spoke as he published a letter to EU leaders calling for action from the ECB, which is forbidden by treaty to take instructions from politicians.
“Businesses and households need access to liquidity. That is impossible if doubts persist over the sustainability of the debt of sovereign states,” he wrote to EU president Herman van Rompuy and European Commission chief Jose Manuel Barroso.
“Today, the only institution we have with the capacity to assure the required conditions of stability and liquidity is the European Central Bank.”