Spain’s government bonds fell, with 10-year yields rising the most in almost eight weeks, after top- rated European countries said national authorities should bear the cost of earlier losses in their banking industry.
European finance ministers squared off over a possible aid program for Spain, with creditors unwilling to commit until the government takes additional steps to boost competitiveness and rid the economy of debt.
Greek Finance Minister Yannis Stournaras arrived at this week’s debt-crisis talks like his predecessors often did, without all the budget cuts demanded by creditors. Unlike them, he left with prospects for aid intact and public doubts on Greece’s future in the euro silenced.
European governments put off decisions on aid for Spain and a loosening of Greece’s loan terms, counting on the European Central Bank’s bond-buying pledges to provide interim relief from market turmoil.
Dutch Finance Minister Jan Kees de Jager and his German counterpart, Wolfgang Schaeuble, declined to comment on providing more aid to Greece, saying they needed to wait until a report on the country’s fiscal situation due to be published as late as October.
Lending money to euro-region countries such as Spain and Italy that are struggling to cut their budget deficits won’t solve their fiscal difficulties or save the euro, Dutch Finance Minister Jan Kees de Jager said.