June 9, 2012 / 6:06 PM / in 5 years

Schaeuble says Spain takes 'big steps' with aid move

BADEN-BADEN, Germany, June 9 (Reuters) - German Finance Minister Wolfgang Schaeuble praised Spain for its decision to seek aid from its euro zone partners on Saturday, telling Reuters in Baden-Baden that the country was taking “big steps” to get its economic and financial problems under control.

Schaeuble said that Spain was on the right path.

“Spain has taken big steps to get its economic and financial problems under control,” Schaeuble told Reuters in the southwesetern town of Baden-Baden. “It has launched profound structural reforms. Spain, and that is what all international institutions are saying, is on the right path.”

Schaeuble has said he believes Spain will be able to solve its banking problems step by step and said Spain’s problems are linked specifically to the collapse of the country’s real estate boom.

“Because of the high burdens arising from the wake of the construction and real estate boom and the current high interest rate levels, Spain has not been able to raise its capital needs on the fiancial markets and thus requested help from Europe to recapitalise banks.”

On Saturday Spain became the fourth country to seek assistance since Europe’s debt crisis began.

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