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Spain says ECB must extinguish flames of euro crisis

Published on Sep 6, 2012 4:45 PM

MADRID (AFP) - Spain pressed the European Central Bank on Thursday to use its cash urgently to curb rising borrowing costs throttling the weakest euro zone states.

Spain had to convince Germany of the need for rapid action, Foreign Minister Jose Manuel Garcia-Margallo said on the day the ECB held a pivotal meeting on the crisis and Madrid hosted Chancellor Angela Merkel.

"We have to urgently resolve the problem of the so-called periphery economies: Greece, Portugal, Ireland, Italy and Spain," the Spanish foreign minister told Onda Cero radio. "Only the central bank bank can do this by putting out the fire," the minister added.

Spanish Prime Minister Mariano Rajoy would seek to convince Merkel of this during the meeting, he said. "We are going to say that everything is fine but in the medium term we have to finance ourselves. And it is the European Central Bank that has the money," Mr Garcia-Margallo said.

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