Rajoy faces G20 leaders for first time since announcement of bank bailout

Spanish government announced that it will not follow IMF advice on VAT and public-sector salaries

Madrid - 18 Jun 2012 - 11:46

Prime Minister Mariano Rajoy will attend Monday's G20 summit in Mexico against a backdrop of growing concern about Spain's finances and questions over whether his austerity policies are enough to keep the country from requiring a full-scale bailout from Brussels.

Rajoy, along with his wife Elvira Fernández, will attend the summit in the Pacific resort of Los Cabos, Baja California. It will be the prime minister's first full meeting with world leaders following a June 9 agreement by European finance ministers to pump some 100 billion euros into the ailing Spanish banking sector, and Rajoy's controversial public claims that it was him who was putting pressure on Europe for the recapitalization plan, and not the other way around.

The meeting comes days after Spain rejected the IMF's latest recommendations, which called for hikes to value added tax and cuts to public workers' salaries.

Rajoy is expected to take part in several key meetings, including one with US President Barack Obama, government sources say.

On his arrival in Los Cabos, the Spanish leader gave his reaction to the news that the Greek parties which accept the terms of the country’s EU bailout had won Sunday’s elections: “The Greeks have decided freely, and the result is good news for Greece, for the euro and for Spain.”


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