German backing for Europeâ€™s bailout fund quickened the bargaining over a bond-buying program for Spain, testing the resolve of government leaders and the European Central Bank to conquer the debt crisis.
Spain is pressing for an ECB intervention with no strings attached, while creditors led by German Chancellor Angela Merkel are reluctant to lend more money. Mario Draghiâ€™s central bank is waiting for the two sides to commit before it wades back into the bond market.
After yesterdayâ€™s â€œSuper Wednesdayâ€ in crisis politics marked by relief over the German supreme courtâ€™s endorsement of the 500 billion-euro ($645 billion) rescue fund, the question of a credit line or full loan program for Spain is set to dominate a two-day meeting of finance ministers starting tomorrow in Nicosia, Cyprus.
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