FXstreet.com (Córdoba) - Germany is open to Spain seeking a precautionary credit line from Europe's rescue fund (ESM), indicating a rolling back of German resistance to a full sovereign bailout for Spain, Bloomberg reported on Tuesday, citing two coalition lawmakers.
Finance Minister Wolfgang Schaeuble had cautioned Spain against seeking aid on top of its bank bailout. Meanwhile, Spain has cited concern of German rejection for its reluctance to seek bailout funds as German Parliament would have to ratify it.
"This suggests that the Spanish bailout – which would have to pass through the German parliament – may be better received than previously thought", said Christopher Vecchio, Currency Analyst at DailyFX. "Headed into the Euro-zone Summit on Thursday and Friday, we recognize that expectations are low, but we think there is significant scope for a surprise".
Finance Minister Wolfgang Schaeuble had cautioned Spain against seeking aid on top of its bank bailout. Meanwhile, Spain has cited concern of German rejection for its reluctance to seek bailout funds as German Parliament would have to ratify it.
"This suggests that the Spanish bailout – which would have to pass through the German parliament – may be better received than previously thought", said Christopher Vecchio, Currency Analyst at DailyFX. "Headed into the Euro-zone Summit on Thursday and Friday, we recognize that expectations are low, but we think there is significant scope for a surprise".
