Spain edges closer to asking for bailout

Spanish prime minister Mariano Rajoy inched closer yesterday to asking for an EU bailout for his country, but said he first needed to know what conditions would be attached and what form the rescue would take.

His comments came a day after the ECB signalled it was preparing to buy Spanish and Italian bonds but only after EU bailout funds were triggered and countries had asked for help.

A source said separately that Spain would not decide whether to apply for several weeks. Buying bonds and providing aid would all be designed to bring down what have been prohibitive borrowing costs in the indebted countries.