Brussels ready to back £80bn bailout for Spain: Economy minister requests bigger-than-expected rescue package for struggling banks

• Decision taken following discussion about eurozone's struggling economy
• Spanish minister said aid will not come with austerity conditions attached
• Move comes a day after Spain's credit rating was downgraded
• David Cameron has said UK will not contribute funds to eurozone bailouts
• Euro falls and forecasters say it could hit seven-year lows by September
• Cost of bailout is equivalent to £80billion or $125billion

By Daily Mail Reporter

PUBLISHED: 08:07 GMT, 9 June 2012 | UPDATED: 21:38 GMT, 9 June 2012

Spain has formally requested a rescue package for its struggling banks of up to €100 billion (£80 billion).

The move was announced by the Spanish economy minister Luis de Guindos at a hastily convened press conference in Madrid.

Mr de Guindos did not put a price on the bailout but said it would be ‘significantly’ more than the £32 billion suggested earlier by the International Monetary Fund.

Sources close to the talks suggested up to £80billion or $125billion is likely to be offered.

Less than an hour before the announcement, Spanish government sources were saying that a decision on whether to ask for a bailout would be delayed until auditors had completed examining the books of the troubled banks.

Spain’s Prime Minister Mariano Rajoy had previously insisted that any decision on accepting a loan would come after the results of two independent audits of the Spanish banking system, which has been blighted by the collapse of the country’s property market.

The auditors are due to report within two weeks.

FULL STORY: http://www.dailymail.co.uk/news/article-2156765/Spain-ask-EU-bailou...