Spain is going to have a bail-out. The question is how and when
IT WAS designed to rescue Spain and, as a result, the euro. So why has the government in Madrid not immediately jumped into the life raft built by Mario Draghi, the president of the European Central Bank, with his bond-buying plan? The answer has a name: Mariano Rajoy, the country’s studiously enigmatic prime minister.
First, Mr Rajoy continues to pretend that Spain might not need a bail-out. “Before taking a decision we must see whether it is really necessary,” he said recently. Few Spaniards are fooled. Mr Draghi’s announcement has pushed bond yields to levels lower than when Mr Rajoy’s centre-right People’s Party won power in November. But that will not hold for ever. Spain’s economic mess—a combination of ailing banks, double-dip recession and 25% unemployment—is getting worse. Mr Rajoy’s labour and other reforms may eventually help, but in the meantime, the patient needs an emergency infusion.