Spanish President Mariano Rajoy and Italian Prime Minister Mario Monti are meeting in Rome on Friday, with talks of bailouts sure to be on the agenda.

Both leaders represent the European Union's (EU) two big trouble spots undergoing high financing costs that may force them to request international assistance. Yields have temporarily retreated after the European Central Bank (ECB) offered a bond purchase plan, albeit with conditions.

Italian deputy finance minister Gianfranco Polillo has told the Bloomberg news agency that Spain and Italy will not request a bailout unless financing costs take off again. No government would voluntarily accept the conditions attached to a bailout programme, said Polillo, adding that a request would only be placed once their backs are against the wall.

Meetings, meetings

Rajoy will be attending a meeting of the Centrist Democrat International and will then meet with Irish Prime Minister Enda Kenny. Monti will meet with Greek Prime Minister Antonis Samaras, Kenny, and the Hungarian Prime Minister.

On Thursday, Italy announced a drastic reduction to growth forecasts while raising its deficit estimate.



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