12 Sep 2012

No outside condtions acceptable for bailout of Spain

5:35 am on 12 September 2012

Prime Minister Mariano Rajoy of Spain says he will not accept outside conditions over a possible bailout.

In his first television interview since taking office, Mr Rajoy said on Monday that no decision has been taken to request a bailout.

Last week, European Central Bank announced plans to buy bonds from indebted countries - under bailout conditions.

ECB president Mario Draghi said the ECB would provide a "fully effective backstop".

The BBC reports the aim of the programme was to cut the borrowing costs of debt-burdened eurozone members by buying their bonds.

The Spanish government's implied borrowing costs fell sharply after the announcement.

"I am absolutely convinced that everyone will be reasonable but I insist that we haven't taken a decision," Mr Rajoy told state television.

"I will look at the conditions. I would not like, and I could not accept, being told which were the concrete policies where we had to cut," he added.

And he promised that pensioners would not be affected by any decisions.