• Germany's news in English

Merkel lauds Spain's reforms amid bailout talk

AFP · 17 Jun 2010, 08:00

Published: 17 Jun 2010 08:00 GMT+02:00

Facebook Twitter Google+ reddit

"I think you have to look at what Spain has done over recent weeks, taking strong decisions," Chancellor Merkel said Wednesday on arrival for talks outside Brussels with conservative EU allies on the eve of a summit set to be dominated by fears over Spain and Europe's economy.

The Spanish government earlier in the day adopted labour market reforms, on top of radical earlier cuts in its public spending plans that Merkel particularly highlighted.

"We should encourage Spain by stressing that it is taking the right road and that by going this way, Spain is contributing towards (global) competitiveness for Europe as a whole," Merkel added of reforms that, if passed by the Spanish parliament, will make it easier to hire and fire people.

"That's very significant," she underlined.

Spanish business daily El Economista said on Wednesday that the IMF, the EU and the US Treasury had drawn up a liquidity plan for Spain including a credit line of up between €200 and €250 billion.

The European Commission and the Spanish government both denied that any bailout is in the works, with Brussels dismissing the report as "rubbish."

Story continues below…

But IMF chief Dominique Strauss-Kahn announced on Wednesday he would visit Madrid this week to meet Spanish Prime Minister Jose Luis Rodriguez Zapatero, adding to speculation over a rescue package.

Strauss-Kahn stressed it would be a "working visit" although he too dismissed the talk of a bailout for Spain.

Facebook Twitter Google+ reddit

Your comments about this article

16:51 June 17, 2010 by Avidror
Well, I'm Spanish, where a TV channel called laSexta told just a few days ago during news time that German press and Government are obsessed with Spanish lack of economic competitiveness. And now I come here and I read that Merkel herself applauds Zapatero...
Today's headlines
Man dies after beating for peeing near Freiburg church
The Johannes Church in Freiburg. Photo Jörgens Mi/Wikipedia

A middle-aged man from southern Germany has died after being attacked by a group of men who took umbrage with the fact he was urinating in the vicinity of a church.

The Local List
Seven German celebrities with uncanny doppelgängers
Former Berlin mayor Klaus Wowereit and actor Alec Baldwin. Photo: DPA; Gage Skidmore, Wikimedia Commons

Check out these seven look-a-likes of well known German figures - we admit that some are more tenuous than others...

Israel seeks to buy three new German submarines: report
A Dolphin class submarine. Photo: DPA

Israel is seeking to buy three more advanced submarines from Germany at a combined price of €1.2 billion, an Israeli newspaper reported Friday.

Here’s where people live the longest in Germany
Photo: DPA

Germans down south seem to know the secret to a long life.

More Germans identify as LGBT than in rest of Europe
Photo: DPA

The percentage of the German population which identifies as lesbian, gay, bisexual or transgender is higher than anywhere else in Europe, according to a new study.

'Reichsbürger' pair attack police in Saxony-Anhalt
File photo: DPA.

A "Reichsbürger" and his wife attacked police officers on Thursday, just a day after another Reichsbürger fatally shot an officer in Bavaria.

Five things not to miss at the Frankfurt Book Fair
Photo: DPA

From consulting a book doctor to immersing yourself in an author's world with the help of virtual reality, here are five things not to miss at this week's Frankfurt Book Fair, the world's largest publishing event.

Parents who don't get nursery spot for kid entitled to pay
Photo: DPA

The Federal Court of Justice (BGH) ruled on Thursday that parents whose children don't receive placements in nursery care are entitled to compensation.

Eurowings braces as cabin crew union proclaims strike
Photo: DPA

A union representing cabin crew for Lufthansa's budget airline Eurowings announced that strikes could take place at any time over the next two weeks, starting on Monday.

Mysterious German U-boat wreckage found off Scotland
Photo: ScottishPower

First World War U-boat "attacked by sea monster” thought to be found off Scottish coast.

Sponsored Article
How to vote absentee from abroad in the US elections
10 things you never knew about socialist East Germany
Sponsored Article
Last chance to vote absentee in the US elections
How Germans fell in love with America's favourite squash
How I ditched London for Berlin and became a published author
Sponsored Article
How to vote absentee from abroad in the US elections
12 clever German idioms that'll make you sound like a pro
23 fascinating facts you never knew about Berlin
9 unmissable events to check out in Germany this October
10 things you never knew about German reunification
10 things you're sure to notice after an Oktoberfest visit
Germany's 10 most Instagram-able places
15 pics that prove Germany is absolutely enchanting in autumn
10 German films you have to watch before you die
6 things about Munich that’ll stay with you forever
10 pieces of German slang you'll never learn in class
Ouch! Naked swimmer hospitalized after angler hooks his penis
Six reasons why Berlin is now known as 'the failed city'
15 tell-tale signs you’ll never quite master German
7 American habits that make Germans very, very uncomfortable
Story of a fugitive cow who outwitted police for weeks before capture
Eleven famous Germans with surnames that'll make your sides split
The best ways to get a visa as an American in Germany
jobs available
Toytown Germany
Germany's English-speaking crowd