No risk, says government as global concerns mount

Concerns over Spain's financial health continued to be the focus of international investors for the third consecutive day Wednesday, despite the government's reassurances that there is not the slightest risk that the country will need a rescue package.

After the ongoing debt crisis claimed two victims - Ireland and Greece - markets indicated that there are growing worries that Spain and Portugal are next in line for Brussels bailouts.

There was some respite. Spain's country risk premium stabilized at 234 basis points after reaching a record high of 250 during the day.

"We must remain calm - I say this sincerely. We run no risk of having to be rescued. Our economy is very different, and above all, our financial sector has always been in good health," said Economy Minister Elena Salgado during a radio interview.

But the opposition Popular Party yesterday accused the Socialist government of hiding data. "When international investors look at a country they ask who is the economy minister, and hope that minister always says reasonable, sustainable things and not a bunch of nonsense," said PP press spokesman Esteban González Pons.

The Socialists, who have asked the opposition to stand behind the government as a show of patriotism, immediately called on PP leader Mariano Rajoy to censure González Pons. Party secretary Marcelino Iglesias warned Rajoy that if he didn't, he "would be defending those who are speculating against Spain's interests."

A Reuters poll released Wednesday showed that 34 out of 50 analysts surveyed believe Portugal, where unions held a general strike on Wednesday, will be forced to seek a bailout.