German finance minister Schaeuble denies Spain bailout fear

Germany’s finance minister has dismissed 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 problems with the property market – are to receive a bailout of up to €100bn.

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.

The Rheinische Post reported that German finance minister Wolfgang Schaeuble said today: “There is absolutely no reason to speculate, beyond this (bank aid) application, about a comprehensive aid programme for Spain.”

He added: “Spain really does not need that.”

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