EU denies that plans for Spain bailout is on the table

The nerve center of the EU is calmly surviving relentless accusations that the markets are subject to what happens in Spain. Although yesterday our risk premium surpassed the psychological barrier of 400 basis points, the EU keeps denying that it is considering a bailout for Spain.

And they said this despite the fact that the 400-point barrier is the an economic touchstone that typically unleashes an urgent intervention for a country. The Greek and Irish bailouts, for example, sprung forth when their respective risk premiums rose about 400 basis points.

Sources from the EU stated emphatically that there is no bailout plan on the table. The same sources also argued that the EU remain "absolutely convinced" that the Spanish authorities will continue to adopt "all the means necessary to achieve fiscal security" and with hopes that the economy "returns to its previous course."

The European Commission confirmed that it will keep monitoring the evolution of the Spanish economy, from global market reactions to the blame that speculators place on Spain.

Chantal Hughes explained that with the various initiatives put in place in Spain, there are no ground to consider that in the next few days an alleged intervention will be necessary. The EU is keeping close contact with the Spanish and Italian authorities, and it does not believe that dramatic circumstances exist.