Spanish Prime Minister Mariano Rajoy filled the headlines over the weekend as he gave interviews to four separate European newspapers, defending his political programme, including the unpopular tax hikes.

The interviews were with Spain's ABC, Italy's Corriere della Sera, France's Journal de Dimanche and Germany's Bild am Sonntag.

Rajoy put a brave face on things but reminded ABC that he had never promised miracles nor did he have a "magic wand" to help Spain get out of its difficult situation, though he showed confidence that his country will surmount the current obstacles. "We'll get out of this with effort, perseverance and faith in ourselves," he said.

He continues to work on "growing and creating employment" and promised to cut taxes "as soon as I can". He pointed out that he understood that his people were unhappy with the recent tax hikes and other measures but feels that "our society is behaving responsibly".

In the French paper, he stated that "the challenge we have ahead is to solve the problems of instability in the euro and advance in the European integration and I feel that Merkel is ready to do so" adding in the German interview that he believed the German Chancellor would be able to convince other German officials.

Along those lines, and in what may have been a veiled reference to rumours on an European Central Bank plan to buy up sovereign bonds, Rajoy commented that "the current situation cannot be sustained much longer, so we must solve the divergent yield problem now." He reiterated that the Eurozone must embark on measures to dispel "doubts over the continued existence of the euro."

NA

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