EU denies bailout push

BERLIN/LISBON - European officials denied “absolutely false” reports Portugal was under pressure to seek a bailout and Spain ruled out on Friday needing help to manage its finances, despite fears of a spreading euro debt crisis.

By (Reuters)

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Published: Sat 27 Nov 2010, 11:19 PM

Last updated: Mon 6 Apr 2015, 11:35 AM

The Financial Times Deutschland quoted unidentified sources as saying some eurozone states wanted Lisbon to seek aid in order to avoid Spain, the fifth largest EU economy, from having to follow suit. “If Portugal were to use the fund, it would be good for Spain, because the country is heavily exposed to Portugal,” the paper quoted a source in Germany’s finance ministry as saying.

EU Commission President Jose Manuel Barroso dismissed the FT report as “absolutely false, completely false,” saying an aid plan for Portugal had neither been requested nor suggested.

A German government spokesman said Berlin was not pressuring anyone to request financial help and said it expected Portugal’s austerity measures to work.

A Spanish government source also denied Madrid was pushing Lisbon to seek help in the wake of Ireland’s call for aid, which is meant to draw a line under its debt crisis and prevent it destabilising the rest of the eurozone.

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