Schaeuble: Spain doesn't need wider bailout

[July 18, 2012]  BERLIN (AP) -- Germany's finance minister is dismissing concerns that Spain's government may itself need a bailout on top of an international rescue for its ailing banks.

Spain's banks -- hit hard by a burst real-estate bubble -- are to receive a bailout of up to euro100 billion ($122 billion). But persistently high borrowing rates for Spain in bond markets have fed worries about the possibility the government itself might need a rescue like those of Ireland and Portugal.

German Finance Minister Wolfgang Schaeuble was quoted Wednesday as telling the daily Rheinische Post: "There is absolutely no reason to speculate, beyond this (bank aid) application, about a comprehensive aid program for Spain."

He added: "Spain really does not need that."

Germany's Parliament is due to vote on the bank rescue package Thursday.

[Associated Press]

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