Malaga - AFP
Spanish Prime Minister Mariano Rajoy vowed Saturday to restore confidence in Spain\'s finances and push for European reforms, after his was among several countries to receive a credit downgrade. Rajoy reiterated his tough reform programme and urged similar action by the EU, after Standard and Poor\'s downgraded Spain and eight other EU countries including France, heightening concerns for the eurozone\'s stability. \"What is in fashion today are things that Spaniards had never heard of before... risk premiums, ratings agencies, falls and rises,\" Rajoy told a rally of his Popular Party in the southern Spanish city of Malaga. \"The government I lead knows perfectly well what must be done to improve Spain\'s reputation and to create growth and jobs, and we are going to do it,\" he added. \"We also know what must be done in Europe, for this is not only our problem.\" At a European summit on January 30, \"I am going to take a clear, firm and convincing stand for the euro. I am going to say that all the countries of the European Union must make economic reforms,\" he added. Spain has been the focus of concern in recent months by financial markets which fear it may fall victim to a debt crisis rattling Greece and Italy. Rajoy was elected in November 20 elections on promises of tough austerity measures to cut the public deficit and reassure investors. Despite this, Standard and Poor\'s on Friday downgraded Spain\'s long-term sovereign credit rating by two notches, from AA minus to A. While Rajoy did not explicitly comment on the rating announcement, his Treasury Minister Cristobal Montoro challenged the downgrade while spelling out that immediate action was needed. \"This downgrade is too general. It affects too many countries and affects the very credibility of the euro,\" he said in comments broadcast on RNE radio. \"But the important thing now is to react. On top of the Spanish government\'s reform agenda, it is also important that the European institutions understand it is time to do all in our power to build and strengthen the new euro.\"