Spanish Prime Minister Mariano Rajoy made a plea on Saturday for greater political and fiscal union in Europe, urging Greeks to stick with the euro as they gear up for an election whose outcome will shape the single currency’s future.
Saying Spain’s business, banks and regional governments were struggling to finance themselves at current high borrowing costs, he urged Europe to integrate its banking system more closely, although he did not go into details.
“Europe has to transmit to the world that the euro is an irreversible project,” he said.
Spain secured a 100 billion euro ($126 billion) rescue last weekend from Europe for its troubled banks, struggling with losses from a decade-long debt binge linked to a burst property bubble.
But the country’s financing costs have continued to rise, bringing it closer to joining Greece in needing a full-scale bailout.
The yield on Spain’s 10-year bond topped 7 percent on Thursday, a danger level that triggered bailouts for Greece as well as Ire