A week after his inauguration, Hollande met with Rajoy at the Elysee Palace to talk policy before heading to a
Hollande, whose anti-austerity platform helped him beat out predecessor
That proposal would require Germany to throw its weight behind struggling nations such as Greece and Spain, whose banks last week had their credit ratings downgraded by Moody's. Unemployment in the Eurozone is at a record high 10.9%. In Spain, the rate is 24.1%; half of young Spaniards are jobless.
Unsurprisingly, Merkel has been adamant in her opposition to the eurobonds plan, even though the
But Rajoy said Wednesday that Spain needs borrowing rates to drop, even suggesting that the
But according to wire reports out of Paris, the prime minister stressed that while Spain's banks could use lower barriers for cash injections, the country won't – unlike Greece – be asking for an international bailout.
Concerns this month that Greece was gearing up to go off the euro and return to the drachma has Greek citizens making withdrawals from their bank accounts. Some say the activity is the precursor to a bank run.
Both Rajoy and Hollande said they were committed to preventing the so-called Grexit, which would likely cause severe market instability.