As Dominoes Resume Tumbling, Valencia Follows Catalonia In Demanding EUR3.5 Billion Bailout

Tyler Durden's picture

Spain is hotting up again. Just a day after Catalonia's beggars-are-choosers moment, Valencia is making headlines with its rear-view mirror demands for a bailout:

  • *VALENCIA NEEDS FUNDS TO COVER PAST YEARS' SPENDING: OFFICIAL
  • *VALENCIA NEEDS OVER EU3.5BLN FROM SPAIN REGIONS FUND: OFFICIAL
  • *VALENCIA TO NEGOTIATE AID AMOUNT WITHIN WEEKS, OFFICIAL SAYS

It would seem the sheer idiocy of yesterday's unconditional demands have been recognized as at least these come with comments that they had previously 'promised' to meet 1.5% deficit targets, but we wonder, given the bailout is to pay for past years' spending what that 'promise' is worth. With expectations that a liquidity fund will be produced within 10 days according to his statement, it appears they are all coming out with their begging bowls:

The Minister of Economy, asked whether he deserves some appreciation of the fact that Catalonia has said he does not want any political status when applying for the rescue, said: "I respect the opinions of others. Basically the condition is clear and stated Minister Montoro at the last board of Fiscal and Financial Policy. "

 

"The condition is that the commitment of the autonomous community to meet the deficit of 1.5% and we and Catalonia, we are committed to meeting this goal," he said.

 

In this regard, he added that Catalonia, which has also benefited from the fund, has already said that "going to meet the deficit of 1.5% and that is the condition that no other", he underlined.

The region of Murcia earlier today also demanded EUR700mm bailout.