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Reuters is reporting this afternoon that Spain is finally ready to make a bailout request so that Europe can move on with its plans to get funding aid to the troubled euro periphery.The only problem – Germany isn’t ready.
That’s seems strange, because it seems like everyone in Europe – not least the Germans – has been pushing for this to get done more and more in the past few weeks as pressure mounts.
SocGen’s head of FX strategy, Kit Juckes, tweeted something to that effect a few minutes ago:
— kit juckes (@kitjuckes) October 1, 2012
Reuters cites a “senior European source” who told Reuters that “the Spanish were a bit hesitant but now they are ready to request aid.”
Privately, several European diplomats and a senior German source said Chancellor Angela Merkel preferred to avoid putting more individual bailouts for distressed euro zone countries to her increasingly reluctant parliament.
“It doesn’t make sense to send looming decisions on Greece, Cyprus and possibly also Spain to the Bundestag one by one,” the senior German source said. “Bundling these together makes sense, due to the substance and also politically.”
However, other German sources and spokespersons from the Spanish government were not able to confirm any such prerogative on the part of the German government.