• Important step to making sure this year’s fiscal targets can be met
• Has no doubt reform will eventually boost growth, not sure when first results will be seen (could be a little while methinks)
• Working on principle that private sector distribution of losses in Spain’s banks will be necessary
• Intention is to minimise costs to taxpayers
• Clear that senior bondholders would not be involved in this burden-sharing
• Depositors would not be involved in any burden-sharing in Spanish banks