Europe needs to come up with an appropriate response to the fiscal and banking crisis in Spain, Portuguese President Anibal Cavaco Silva said.
“Besides the very courageous efforts of the Spanish government, it is our understanding that there is a need for a European response,” Cavaco Silva said in comments aired by SIC Noticias television today. “What’s at stake here is the stability of the entire euro zone.”
It’s important for the European Union and for Spain to succeed in their efforts to weather the ongoing debt crisis, as Portugal’s ability to meet its own targets, especially in terms of economic growth, also depends on external factors, said Cavaco Silva.
The European Commission approved a Spanish program to bolster the capital of some of the country’s banks today after officials denied a full-blown Spanish bailout was being prepared. Portugal is cutting spending and raising taxes as it tries to comply with the terms of its 78 billion-euro ($95 billion) rescue from the EU and the International Monetary Fund.
“The Spanish problem is a problem that is of interest to the entire European community and in particular to the euro area,” said Cavaco Silva.