Spain bailout report as unemployment hits new high

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Spain bailout report as unemployment hits new high

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Spain’s unemployment has worsened again. Between April and June, the jobless rate rose to 24.6 percent of the workforce from 24.4 percent in the first quarter.

The total is the worst since Spain returned to democracy in the mid 1970s and half of those under the age of 25 are without a job as companies continue to shed staff in fear of prolonged recession and consumers stop buying.

On Friday a eurozone official was quoted – anonymously – by Reuters as saying that Spain has for the first time conceded it might need a full EU/IMF bailout unless it can bring down its state borrowing costs.

The deputy Prime Minister denied that. Soraya Saenz de Santamaria said: “We will not seek a rescue. A full rescue bailout is not an option. What we are doing is working to accomplish the resolutions adopted by the European Council, and the measures announced, which will give us more stability in the euro area.”

The idea that the ECB is about to do more to help stuggling eurozone countries like Spain did push down Madrid’s borrowing costs but they still remain at unsustainably high levels.