BRUSSELS (MNI) – European Central Bank Vice President Vitor
Constancio on Friday expressed confidence in Spain’s fiscal and economic
policies.
Despite the decision by Standard & Poors to downgrade Spain’s
sovereign debt rating by two notches to BBB+, the ECB’s assessment of
Spain was unchanged, Constancio told journalists on the sidelines of a
conference here.
“There are misperceptions that are going on,” he said, predicting
that by “staying the course” Spain would eventually regain the market’s
confidence.
“Our scenario is being pursued, there is no reason to change that,”
he said.
Spanish banks’ poor results partly reflect the government’s demand
for higher provisioning against expected losses, which was “good”, the
central banker said.
Earlier today the European Commission also lent support to Spain,
saying that its policies of fiscal consolidation and structural reform
were the best way to restore growth.
EU officials have in recent weeks ruled out the possibility that
Spain may need to seek financial assistance from the Eurozone’s bailout
funds and the IMF, arguing that they saw no need.
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