Politics is all about posturing, bluffing and counter bluffing. One day, leaders will say one thing and then the next, the exact opposite. They make promises, raise hopes and then break them leaving every one confused and disheartened.
Not too long ago, Mariano Rajoy insisted that Spain would not be seeking a sovereign bailout. Now things are very different. Borrowing costs for the country have reached new heights and several of the regions are seeking assistance from central government to meet their debts.
At a news conference following a cabinet meeting, Mr Rajoy said that he was ready to do what was best for Spain meaning that he would be prepared to ask the euro region’s bailout funds to buy Spanish debt if the conditions were right.
Everything really depends on how long the European leaders, the ECB and European rescue fund are prepared to wait before making real decisions; putting pen to paper instead of just offering announcements of intent and proposals.
Of course, all parties want the best out of any deal that is brokered but you can’t help but feel that someone soon will have to give in and stump up the cash otherwise Spain will face an even more serious situation than it does now. We thought in 2008 that things could not get worse, they did and could get even more worse in the years to come. There may be light at the end of the tunnel but at the moment it is so dim we cannot see it.
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