EUROZONE-GREECE/SPAIN Spain prepared for possible Greek contagion - economy minister

Record ID: 148886

  • Title: EUROZONE-GREECE/SPAIN Spain prepared for possible Greek contagion - economy minister
  • Date: 29th June 2015
  • Summary: MADRID, SPAIN (JUNE 29, 2015) (REUTERS) NEWS CONFERENCE IN PROGRESS MEDIA / NEWS CONFERENCE IN PROGRESS
  • Embargoed: 14th July 2015 13:00
  • Keywords:
  • Location: Spain
  • Country: Spain
  • Topics: General
  • Reuters ID: LVA2CG9EHZIGANJSXVS4AUWXUG8K
  • Aspect Ratio: 16:9
  • Story Text: Spain's economy is much better prepared to deal with a possible market contagion from Greece than it was in 2012, at the height of the eurozone debt crisis, Economy Minister Luis De Guindos said on Monday (June 29).
    Madrid had come close to requesting European Union aid three years ago.
    The Spanish cabinet met in Madrid on Monday (June 29) to discuss the Greek crisis.
    Spain's return to economic growth after a long downturn and the restructured banking sector were the country's main defence against any potential contagion from the Greek crisis, de Guindos said.
    "Spain's main contingency plan is that we have carried out the reforms and are the economy that has had the most intense turn in the [European] Union's monetary union. That's our contingency plan. That's where our firewall is, that is, the situation of our banks, our fiscal position, our economic growth, the competitiveness of Spain's economy," he told a news conference.
    De Guindos said there was still time to reach an agreement on Greece, with the final deadline on the country's current credit lifeline due to run out at midnight on Tuesday (June 30), suggesting that an agreement before the deadline would make things easier.
    "The margin of negotiation is easier, is seen with more possibility of future action, if an agreement is reached before the programme expires. Afterwards, it becomes more complex because, as you know, there are rules, there are national parliaments, etc etc, etc," he said.
    De Guindos also said the temporary closure of Greece's banks was very negative for ordinary people, who are most affected by the crisis.
    "I think the Greek government must be aware that the decision it took on Friday will have negative repercussions not on the rich and powerful Greeks, I assure you of that. Don't have a doubt that they have already taken their money away," the economy minister said.
    De Guindos said EU members agree they want Greece to remain in the union.
    "Firstly, Greece continues to be part of the eurozone and we all want it to continue being part of the eurozone," he said.
    Greek Prime Minister Alexis Tsipras surprised creditors on Friday by calling a referendum on the austerity cuts in the aid package proposed by them.
    He announced capital controls on Sunday night to prevent banks from collapsing.
    The breakdown of talks between Greece and its international lenders has pushed the country towards a likely default on 1.6 billion euros ($1.77 billion) of International Monetary Fund loans and closer to an exit from the euro currency bloc.
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