Spain 'will not' follow Portugal in seeking aid

European finance ministers do not expect Spain to follow in the footsteps of Portugal in seeking a financial bailout.

Spain is the latest eurozone country to come under pressure from financial markets in the past year, with Ireland, Greece and Portugal previously having to request monetary aid from the EU.

It stems from concerns surrounding a large budget deficit and a burst housing bubble in Spain.

To this end, the country has made progress in slashing its deficit, but unemployment remains high, at close to 20 per cent.

However, French finance minister Christine Lagarde dismissed concerns about the country's fiscal strains, with the Wall Street Journal quoting her as saying that "Spain isn't a problem".

The news is likely to be welcomed by individuals looking to buy real estate in the country, with their currently a high level of distressed properties available.

Market concerns have eased in recent weeks with investors gradually growing more confident that Spain can clean up its beleaguered savings banks.

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