"no aid talks underway," says madrid

Spain has emphatically denied that it is in talks with the eurozone over financial assistance to lower its borrowing costs.

That followed a Reuters report which said though there had been no final decision, Madrid was talking to its eurozone partners about condition for aid.

Spain's deputy prime minister Soraya Saenz de Santamaria, speaking after the weekly cabinet meeting, told reporters: "In case there was any doubt, the European Commission's spokesman for Economic Affairs signalled that the Commission is not holding any negotiation with Spain beyond the aid awarded to support Spanish banks. There is no negotiation under way for any type of aid to Spain. The spokesman for economic affairs has said it and I'm confirming it today."