Spanish leader says no need for bailout for now

MADRID (AFP) - Spain's Prime Minister Mariano Rajoy said on Monday that his debt-laden economy has no need of a European bailout, after holding a summit with Italy.

The leaders of Italy and Spain, the eurozone's third- and fourth-largest economies, met at time of uncertainty about if and when Madrid will be forced to reach out for a European Central Bank (ECB) rescue line.

If Spain does so, some analysts fear that Italy could be next in line as financial markets seek out the next weak link, creating a domino-like ripple across the most fragile members of the 17-nation region.

In a joint news conference with Italian Prime Minister Mario Monti, the Spanish leader was asked about the possibility of Madrid asking for eurozone aid including bond-buying support from the ECB.