Spain Torments Draghi on Deficit as Banks Tap Loans: Euro Credit
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Spanish Prime Minister Mariano Rajoy may be enjoying the European Central Bank’s emergency funds too much for Mario Draghi’s comfort.
Rajoy’s loosening of a pledge to cut Spain’s deficit within days of the central bank’s latest three-year loan offering to banks has confronted the ECB president with just the behavior it wants to avoid. ECB officials are concerned the respite they have won for the region’s most vulnerable nations has eased pressure on them to address the budget shortfalls that first provoked the turmoil.