Spain will today formally ask its eurozone partners for up to €100bn to recapitalise its banks, opening a week of diplomatic activity that will culminate in an EU summit on Thursday to address the region’s damaging sovereign debt crisis.
Luis de Guindos, Spain’s economy minister, and his colleagues in the 17-nation eurozone say that details of the loan for Spain and the conditions attached should be agreed in a memorandum of understanding to be discussed by eurogroup ministers on July 9.
But institutions and governments have continued to voice differences over how to apply the bailout and broader fiscal and banking reforms needed to restore investor confidence .
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