Spain will not have to tap any EU fund-PM Zapatero

Published 12/02/2010, 04:23 AM
Updated 12/02/2010, 04:28 AM

MADRID, Dec 2 (Reuters) - Spain will not have to tap any European Union fund, Spanish Prime Minister Jose Luis Rodriguez Zapatero said in a transcript of an interview with broadcaster CNBC to be broadcast later on Thursday.

Zapatero also called for a "much more integrated fiscal policy" for the euro zone.

The consolidation process of Spain's banking system had not slowed down, Zapatero said, adding that Spain has had to inject less capital than any other euro zone nation into its banking system.

"It's been barely 1 percent of its gross domestic product (GDP). That's 11 billion euros ($14.4 billion) -- less than France, less than Germany, less, of course, that the UK -- in order for the financial institutions here to reach the required capital amounts," he said.

Spanish banks have reduced their recourse to the European Central Bank for funding, he said, as they regain access to the wholesale funding markets.

Zapatero told CNBC that Spain needs to export more, adding Spain would welcome investment from Asian sovereign wealth funds.

"There is a wide array of possibilities for investment in Spain," he said. (Reporting by Sonya Dowsett; editing by Alexander Smith)

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