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Spain Must Surrender Now

Spain’s Prime Minister remains tight-lipped on whether he has decided to ask for more financial aid for his country, repeating instead Tuesday that he would wait until the European Central Bank outlines its plans and conditions for buying government bonds before making a move.

“As long as we don’t know what decision the ECB is going to make, we won’t be making one either,” Mariano Rajoy told reporters Tuesday.

Two weeks ago the ECB’s president Mario Draghi said the bank would intervene to help lower a country’s borrowing costs if its government applies for rescue aid from the bailout funds set up by the 17 euro countries. But such a request would come with conditions, such as extra cuts.

Following Draghi’s announcement, Rajoy opened the door to such a deal but said the government needed the ECB to clarify its position. “There’s no news until we know for sure what the ECB is going to do,” he said.
--Bloomberg, 14 Aug. 2012