SPAIN: Economy Minister Elena Salgado says Spain is in relative 'tranquility' despite markets turmoil

Record ID: 573517

  • Title: SPAIN: Economy Minister Elena Salgado says Spain is in relative 'tranquility' despite markets turmoil
  • Date: 4th August 2011
  • Summary: MADRID, SPAIN (AUGUST 03, 2011) (REUTERS) SPANISH ECONOMY MINISTER ELENA SALGADO ARRIVING FOR NEWS CONFERENCE VARIOUS OF SALGADO BEING PHOTOGRAPHED BEFORE NEWS CONFERENCE VARIOUS OF NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Spanish) SPANISH ECONOMY MINISTER ELENA SALGADO, SAYING: "We cannot rule out the chances for this market's volatility to last for a few more days. In any case we will be very focused and vigilant and, of course, in permanent contact with the European authorities." PHOTOGRAPHER JOURNALISTS AT NEWS CONFERENCE (SOUNDBITE) (Spanish) SPANISH ECONOMY MINISTER ELENA SALGADO, SAYING: "We think that the debt emissions have covered more than of the two thirds of this year's total needs so we are facing these market's tensions in a better position than others. In any case, I insist, there are reasons to be concerned but I would not describe the situation as very critical. It has to be a warning, and that is how the President of the European Commission understands it, for all the countries to meet their goals in the shortest possible term." VARIOUS OF NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (Spanish) SPANISH ECONOMY MINISTER ELENA SALGADO, SAYING: "Tomorrow, we will face the auction with our best criteria and, of course, in the hope that the European Commission President's statement and all the contacts that we have made in the last few hours contribute to calm down the markets." NEWS CONFERENCE ENDING
  • Embargoed: 19th August 2011 13:00
  • Keywords:
  • Location: Spain, Spain
  • Country: Spain
  • Topics: Domestic Politics
  • Reuters ID: LVABXHH1HVW085Z33SNVV93U4DE
  • Story Text: The turmoil in the eurozone periphery bond markets could last a few more days, but Spain will go ahead with two bond auctions planned for Thursday (August 4), Economy Minister Elena Salgado said on Wednesday (August 3).
    "We will face the auction with our best criteria and, of course, in the hope that the European Commission President's statement and all the contacts that we have made in the last few hours contribute to calm down the markets," Salgado said during a news conference after a crisis meeting on the economy with Spanish Prime Minister Jose Luis Rodriguez Zapatero and other government officials.
    The statement from European Commission President Jose Manuel Barroso on euro area bond markets should help calm markets ahead of the bond auction, Salgado said.
    "We cannot rule out the chances for this market's volatility to last for a few more days. In any case we will be very focused and vigilant and, of course, in permanent contact with the European authorities," Salgado said, highlighting the country's low debt to GDP ratio compared with other euro zone countries.
    Zapatero and Salgado held Wednesday's crisis meeting on the economy as the country seeks a way to calm concerns of investors driving its debt costs ever closer to unsustainable levels.
    Spain's cabinet already had planned to meet on Aug. 19, at which date it is expected to take fresh economic measures to help end the crisis. There is speculation in Spanish media plans will include changes to corporate tax as well as measures to stimulate job creation, though analysts do not expect them to have a great economic impact before early elections Nov. 20.
    An extra cabinet meeting on August 26 is also being planned, according to a report on Wednesday.
    Wednesday's meeting came a day ahead of two auctions of Spanish medium-term bonds that will be a key test of investor appetite.
    Zapatero delayed his holiday to the south of Spain on Tuesday (August 2) after markets dumped debt issued by the currency bloc's higher-yield nations, sensing that European leaders had not ended an escalating crisis with Greece's second bailout. After leaving later that day, he returned to Madrid on Wednesday.
    The cost of financing Spain's ten-year bonds eased to around 6.22 percent by late morning on Wednesday from as much as 6.45 percent earlier in the day, remaining within touching distance of euro era highs.
    Analysts say if yields head much higher, markets could soon force Madrid to follow in the footsteps of Athens, Lisbon and Dublin in seeking external financial help.
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