The mayor of Madrid, a prominent member of Spain’s ruling party, said yesterday it “seems inevitable” the central government would apply for some kind of international aid package as the country goes through a deep recession and borrowing costs soar.

Ana Botella, wife of former prime minister José Maria Aznar, is the first high-level Spanish official to say publicly that the country would need a financial rescue.

“There’s no doubt about it. It’s very probable that we’re going to have to ask for help from the European Union,” Ms Botella told Spanish news agency Europa Press. “It seems inevitable.” Spain’s recession-hit economy, shattered banking system and sky-high unemployment are at the centre of concerns over the euro zone as investors worry a bailout of the bloc’s fourth-largest economy would stretch its rescue funds to breaking point.

Prime minister Mariano Rajoy has said he would not take a decision on applying for a new aid package on top of a €100 billion loan for banks, until he knew what conditions would be attached. – (Reuters)