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Spain in Talks With Europe on Direct Aid for Banks, El Pais Says

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June 4 (Bloomberg) -- Spain is negotiating with European leaders on how to recapitalize its banking system without such help being considered a bailout, El Pais reported, citing an unidentified government official.

Talks are taking place about a mechanism that could be used by all European banks, involving direct aid that wouldn’t be subject to conditions requiring further austerity measures, the newspaper said,

Spain sees Germany softening its position on the proposal, El Pais cited the official as saying.

To contact the reporter on this story: Sharon Smyth in Madrid at

To contact the editor responsible for this story: Andrew Blackman at

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