European Commission calls on Spain to delay 'bad bank' plans

The European Commission has asked Spain to delay by another week the plans to create a "bad bank", a fund which would pool much of its financial sector's soured property investments, so that experts in Brussels can review the project, the government in Madrid said.

The European Commission has asked Spain to delay by another week the plans to create a "bad bank" so that experts in Brussels can review the project, the government in Madrid said.

The plan was initially scheduled to be approved at today's Cabinet meeting, but will now be cleared at the next ministers' meeting on August 31, Deputy Prime Minister Soraya Saenz de Santamaria said.