Rajoy Faces Bailout Split With Monti at Madrid Meeting
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Italian Prime Minister Mario Monti and his Spanish counterpart Mariano Rajoy tried to mask a growing divide over Europe’s new bailout strategy by emphasizing their commitment to the timetable for banking union.
While both urged their European partners to meet a year-end deadline to establish a single banking supervisor, strains emerged when a Spanish reporter asked Monti whether he would request a bailout alongside Rajoy. The Italian premier pushed back against formalizing ties between the nations and signaled Spain will probably have to go it alone in negotiations with the gatekeepers of Europe’s rescue money.