Masochistic orgullo

21 September 2012 By Pierre Briançon

Madrid fears that an abject call for ECB help would hurt national pride. It’s more dignified to take a multi-year reform plan to the central bank’s new bond-buying window. But falling Spanish yields may make Germany feel that Spain doesn’t need the ECB’s help.

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Spain is considering freezing pensions and speeding up a planned rise in the retirement age as it races to cut spending and meet conditions of an expected international sovereign aid package, sources with knowledge of the matter said.
The measures would save at least 4 billion euros a year as well as fulfil recommendations in a European Union document released in May which senior euro zone sources said was being used as a blueprint for the terms of a sovereign aid programme.
The Financial Times wrote on Sept. 21 that EU authorities are helping the Spanish government craft an economic reform programme that will be unveiled next week, paving the way for a new Spanish rescue programme and unlimited bond buying by the European Central Bank.

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