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Germany is working on a deal to allow the the EU's ESM rescue fund, which comes into force next month, to provide Spain with the funds to recapitalize its banks but avoid the shame and strictures of a formal state bailout, Reuters reports. Any conditions would mainly be focused on the lenders, with the EU wanting to "cut the link between the banks and the sovereign."

Germany is working on a deal to allow the the EU's ESM rescue fund, which comes into force next month, to provide Spain with the funds to recapitalize its banks but avoid the shame and strictures of a formal state bailout, Reuters reports. Any conditions would mainly be focused on the lenders, with the EU wanting to "cut the link between the banks and the sovereign." Post your comment!
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