Spain to present new set of reforms by end September

NICOSIA (Reuters) - Spain will present by the end of September a new set of structural reforms, based on recommendations from the European Union and including a detailed timeline, Economy Minister Luis de Guindos said on Friday.

The new program of reform will be made public along with the 2013 budget on September 28, the day the Spanish government will also publish the results of a final stress test of the country's banking sector.

Spain has become the new focus point of the euro zone debt crisis, now in its third year, and analysts as well as sources believe it is only a matter of time before it seeks external aid to finance its debts.

"We will adopt a new set of reforms to boost growth ... It will be in line with the recommendations of the European Commission," de Guindos told reporters after a meeting of euro zone finance ministers in Nicosia. A detailed timeline on the reforms will be provided.

De Guindos also said the new reforms were "absolutely not" linked to the conditionality of a potential bond-buying program from the euro zone rescue funds and the European Central Bank.

Senior European sources told Reuters Spain was using the same set of recommendations as a basis for talks about the strings attached to such a program which have been taking place for a few weeks.

The sources also said no additional conditions would be imposed on Spain but a clear timeline and monitoring from international lenders would be necessary to qualify for the program, meaning Madrid would be in a position to proceed with a potential aid request after the new reforms are presented.

Three other senior European sources said one of the reasons why Madrid was not moving forward with the request was Germany's lack of clarity on whether it would answer positively to it.

"I do hope that will get clearer today," one of the sources said on condition of anonymity.

Jean-Claude Juncker, who chairs monthly meetings of euro zone finance ministers, said the new reforms would help Spain meet the EU-agreed fiscal targets for this year and next.

"The Spanish minister reiterated the full commitment of the Spanish authorities to meet their budgetary targets as required by the revised excessive deficit procedure authorization, including through additional measures if needed," Juncker said, adding that meeting the objective was in reach.

Many economists however expect Spain to miss its 2012 target of 6.3 percent of Gross Domestic Product, leaving little choice to the country over an aid request.

(Reporting by Julien Toyer and Robin Emmott, additional reporting by Ecofin team, editing by Mike Peacock)

Source: http://news.yahoo.com/spain-present-set-reforms-end-september-eus-rehn-110729762--business.html

emancipation proclamation april 16 tornadoes mitch hedberg secret service scandal shea weber greystone