In many ways, indeed, Spain is behaving like a model pupil of German chancellor Merkel – and Rajoy is a genuine believer in austerity and budget-balancing. Yet the only concession Spain has received so far from Europe is a slight relaxation of its deficit targets, going from the impossible to the still difficult aim of doing this over three years. Rajoy has finally concluded that Spain's main problem is the euro. Badly structured and with a malfunctioning central bank that always favours the big states of the centre, it is still a half-baked project. Either that is fixed, or the euro is doomed. The government strategy has been to turn Spain's weakness into strength. Spain is too big a problem. If it is allowed to fall, Rajoy's ministers warn, Spain will bring the euro down with it.
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