Spain's Prime Minister defends solvency
Spain Prime Minister José Luis RodrÃguez Zapatero has passionately defended his country’s solvency. With Greece struggling to contain a debt crisis, some investors have fretted that the problems could spread to Spain.
“Spain has a big plus. It is, as a country, very solvent,” he told the Frankfurter Allgemeine Zeitung, adding: “We have a plan for the reduction of the deficit within three years.” Asked if the Spanish economy would flounder, together with the euro, Zapatero replied: “No. The euro will retain its vitality. We are still in the biggest crisis since the Great Depression and in a phase during which confidence in us and the euro is being tested. But we will pass this examination.”
Turning to the possibility of Greece, or other euro zone states such as Spain, being rescued, Zapatero added: “If one has to intervene, then I think that has to be done together, within the institutions of the EU. We should have confidence in the Greek government and in the requests the (European) Union has made of it,” he said.
Some argue that as a socialist, Mr. Zapatero is in a better position to tackle reform than are the conservatives. He could say that “the current system is socially divisive” and “mainly penalizes the young, women and immigrants,” said Charles Powell, a history professor at CEU San Pablo University in Madrid.
