Spain unlikely to need EU bailout, finds Reuters poll

Spain is unlikely to require EU bailout money this year, according to a Reuters poll

The Spanish government’s market reforms have been successful in diminishing the country’s need for a future EU bailout, according to a Reuters poll taken last week.

The poll, which was conducted among some of Europe’s most respected financial figures and economic observers, reflects a growing confidence in the Spanish economy’s ability to pull through the recession unaided. Instead, other countries in the EU – such as Slovenia – are now seen as the most likely candidates for EU bailout funds…

Spain has been successful in raising funds to pay off huge parts of its deficit and debt and, as a result, only seven of the 49 experts polled by Reuters now believe that Spain would require EU intervention. Just weeks before for a similar poll, 16 respondents were of the opinion that Spain would need financial help.

But since then, Spain has auctioned off government bonds in a flash sale that has proven popular with private investors. As a result, borrowing costs for the government have fallen to their lowest level for three years, spurred by the favourable conditions generated by the government’s reforms in the labour market, the property market, and elsewhere.

Such stability comes as good news for Spain, particularly after the country had to borrow €40bn in 2012 to recapitalise many of its battered and bruised banks. This year, the picture for the country is a whole lot rosier.

Spain isn’t out of the woods just yet, but it has certainly taken many positive and confident strides along the correct path. Let’s see what the traditionally profitable summer season brings…