IMF urges aid for Italy, Spain

The International Monetary Fund called on the eve of a European Union summit for both Spain and Italy to seek euro zone assistance to draw a line under the bloc's debt crisis, but Rome has rebuffed the idea and Madrid seems likely to apply alone.

 

The two-day Brussels summit will debate steps towards a single banking supervisor and proposals for closer euro zone integration, including German Finance Minister Wolfgang Schaeuble's idea of a super-commissioner with veto powers over national budgets.

 

No decisions are expected this week and there is no certainty as to when Spain will come off the fence.

 

Spain dodged a bullet on Tuesday when Moody's maintained its credit rating at investment grade, with a negative outlook, on the assumption that Madrid will trigger European Central Bank intervention soon to lower its borrowing costs.