First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We'd like our readers to start paying for Daily Maverick

More specifically, we'd like those who can afford to pay to start paying. What it comes down to is whether or not you value Daily Maverick. Think of us in terms of your daily cappuccino from your favourite coffee shop. It costs around R35. That’s R1,050 per month on frothy milk. Don’t get us wrong, we’re almost exclusively fuelled by coffee. BUT maybe R200 of that R1,050 could go to the journalism that’s fighting for the country?

We don’t dictate how much we’d like our readers to contribute. After all, how much you value our work is subjective (and frankly, every amount helps). At R200, you get it back in Uber Eats and ride vouchers every month, but that’s just a suggestion. A little less than a week’s worth of cappuccinos.

We can't survive on hope and our own determination. Our country is going to be considerably worse off if we don’t have a strong, sustainable news media. If you’re rejigging your budgets, and it comes to choosing between frothy milk and Daily Maverick, we hope you might reconsider that cappuccino.

We need your help. And we’re not ashamed to ask for it.

Our mission is to Defend Truth. Join Maverick Insider.

Support Daily Maverick→
Payment options

Spain to request EU bank aid on Saturday

Newsdeck

Newsdeck

Spain to request EU bank aid on Saturday

By Reuters
08 Jun 2012 0

Spain is expected to request European aid for its ailing banks at the weekend to forestall worsening market turmoil, becoming the fourth and biggest country to seek assistance since the euro zone's debt crisis began, EU and German sources said.  By Julien Toyer and Matthias Sobolewski.

Two senior EU officials said finance ministers of the 17-nation single currency area would hold a conference call on Saturday to discuss a Spanish request for an aid package, although no figure had yet been set.

The Eurogroup would issue a statement after the meeting, they said.

“The announcement is expected for Saturday afternoon,” one of the EU officials said.

The move comes after Fitch Ratings slashed Madrid’s sovereign credit rating by three notches to BBB from A on Thursday, highlighting Spain’s exposure to its banks’ bad property loans and to contagion from Greece’s debt crisis.

“The government of Spain has realised the seriousness of their problem,” a senior German official said.

He added that an agreement had to be reached before a Greek general election on June 17 which could lead to Athens leaving the euro zone if parties opposed to the terms of an EU/IMF bailout win.

There was no immediate official comment from the Spanish government. The EU and German sources spoke on condition of anonymity due to the sensitivity of the matter.

Fitch said the cost to the Spanish state of recapitalising banks stricken by the bursting of a real estate bubble, recession and mass unemployment could be between 60 and 100 billion euros ($75 and $125 billion).

An International Monetary Fund report, due to be published on Monday, is expected to estimate Spanish banks’ capital needs at a lower figure of 40 billion euros, but market conditions have deteriorated since that data was collected, officials said.

European shares and the euro fell on Friday amid mounting concern over Spain following the Fitch downgrade.

While Spain would join Greece, Ireland and Portugal in receiving a European bailout, officials said the aid would be focused only on its banking sector, without taking the Spanish state off the credit markets.

Any political conditions would be light, related to the banks and would probably not add to the austerity measures and structural economic reforms which Prime Minister Mariano Rajoy’s government has already put in place, EU and German sources said.

The European Commission and EU paymaster Germany both agreed in principle last week that Spain should be given an extra year to bring its budget deficit down below the EU limit of 3 percent of gross domestic product because of a deep recession. DM

Photo: Spain’s PM Rajoy (Reuters)

Gallery

Please peer review 3 community comments before your comment can be posted