Economics
Spain’s Bailout Defeat Weakens Rajoy’s Bid for Deficit Goal
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Prime Minister Mariano Rajoy’s surrender to European officials on taking a bailout for Spain’s banks may weaken his political authority and his credibility in financial markets.
Rajoy’s June 9 request for as much as 100 billion euros ($125 billion) after stating two weeks ago that Spain wouldn’t need a rescue marks a swift reversal for the premier who won the biggest majority in 30 years in November. It may fuel skepticism he can meet his deficit-cutting promises.