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Analysis: Rajoy's bailout shyness adds to Spain's risks

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MADRID (Reuters) - The longer Prime Minister Mariano Rajoy puts off asking for aid from the euro zone, the greater the risk of further financial turmoil and an even worse recession in Spain, analysts say. Promises of help from the EU and the European Central Bank have brought Spain's borrowing costs down from unsustainable levels in the past few months. But ironically, if Rajoy is persuaded by the improved market conditions that he no longer needs to ask for help, it could make the situation worse. A government source told Reuters on Wednesday that the prime minister had not ruled out applying for a rescue, but deficit cutting progress at home and EU movement toward a banking union both give...

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