Rajoy wags his finger at Italian PM as he rules out need for a bailout

As the Spanish financial markets sought relief in supportive statements from the European Central Bank (ECB), Prime Minister Mariano Rajoy took umbrage at unwanted remarks by his EU partners on Spain’s woes, suggesting they confine themselves to putting their own houses in order.

Rajoy did not mention anyone by name, but in a barely veiled and vigorous public rebuke, the Popular Party leader’s remarks were clearly meant for Italian Prime Minister Mario Monti, who was reported Tuesday as attributing the renewed pressure on Italian government debt to the problems facing Spain.

“The situation in the euro zone and the markets is enormously complex,” Rajoy said in a televised speech directed at members of his party. “There have been remarks by some European leaders again last night (Tuesday). I want to say that we are not going against anyone; we don’t speak of other countries, and we wish all of them the best.

“What is good for Spain is good for the euro zone. We all have problems; we are working to resolve ours and help the euro zone, and I hope that others do the same by being prudent about that they say. We all have a great responsibility. We want a strong Europe and a strong euro.”

We are working to resolve ours and help the euro zone, and I hope that others do the same by being prudent"

This is the second time Monti has directed his barbs at Spain. Last month, the Italian leader said Spain was “giving Europe every right to be worried.” Rome attempted to diffuse the situation by subsequently issuing a statement saying Italy “had plenty of confidence.” The rift was apparently healed at a face-to-face meeting of the two leaders on the sidelines of a summit in Seoul.

French President Nicolas Sarkozy has also made critical remarks about Spain while campaigning for the presidential elections in his country. At the start of this month, ECB President Mario Draghi said the borrowing costs of countries such as Spain had risen sharply of late because of the markets.

Rajoy insisted Spain was in no danger of having to ask for a bailout. “There are countries in Europe that can’t finance themselves,” he said. “This is not the case of Spain, and it won’t be the case of Spain in the future. I want to make this clear. That is why I am asking for the utmost prudence and responsibility possible.”