Rajoy urges Van Rompuy to speed up banking union, denies bailout talks

Promoted content

Spanish Prime Minister Mariano Rajoy on Tuesday urged EU Council chief Herman Van Rompuy to quickly implement the decisions made at the last EU Summit.

Earlier in June, European leaders reached a deal to create a euro zone banking union to be supervised by the ECB. Under the new rules, the EU bailout fund could directly recapitalise debt-ridden banks.

“It’s very important to have a banking union ready by December, as well as a European supervision authority and a common deposit guarantee. It is also essential that the European institutions can start recapitalising banks directly”.

Rajoy’s pleas come amid speculation that Spain needs a full-blown bailout. The Spanish government has so far requested up to 100b euros to rescue its failed banking system.

Rajoy said he will not consider extra financial aid until the ECB releases details on how it plans to help indebted governments.

” There is not a negotiation regarding this issue because the Spanish government has not made a request. Therefore, nothing is being negotiated”.

Rajoy met Van Rompuy in Madrid after official figures showed a deepening of Spain’s recession. He is due to meet French president Francois Hollande on Thursday and German Chancellor Angela Merkel next week.

Subscribe to our newsletters