De Guindos Said to Push Spain Cuts as Germany Signals Aid

Spanish Economy Minister Luis de Guindos is pushing for additional budget cuts after Germany signaled to him that such a move would be rewarded by bond market assistance, according to two people in Madrid familiar with his thinking.

De Guindos wants further cuts in health and education spending after his German counterpart, Wolfgang Schaeuble, told him that such a move would enable Germany to support any steps by the European Central Bank to push down Spanish borrowing costs, said the people, who discussed the proposal with the economy minister. They asked not to be named as the discussions were confidential. ECB President Mario Draghi also backs de Guindos’s push, said one of the people.