Spain not negotiating soverign bailout

MADRID - Spanish Minister of Economy and Competitiveness Luis de Guindos on Wednesday reiterated that the Spanish government is not negotiating any sovereign bailout with the European Union (EU), amid rising concerns over Madrid's tremendous financial squeeze.

In a press conference at the national headquarters of the People's Party in Madrid, De Guindos added that the Spanish government was not seeking an intervention by the European Central Bank (ECB) in its bond market.

He insisted that Spain would fulfill deficit targets with or without ECB intervention because the country was committed to fiscal consolidation.

On Friday, Spain will adopt new financial reforms that will help prevent future economic crises, de Guindos said.

Spain's debt-struck Catalonia region reached out Tuesday for a 5.0-billion-euro (about $6.3 billion) central government rescue, feeding expectations that the eurozone's fourth largest economy will be forced to seek a broad bailout on top of an international bailout of up to 100 billion euros to shore up its banking sector.

Catalonia will receive aid of 5 billion euros ($6.25 billion) from Spain's Liquidity Autonomous Fund.

The region would need to reduce its budget deficit to 1.5 percent of its GDP by 2012, De Guindos said.