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Page last updated at 08:00 GMT, Friday, 7 September 2012 09:00 UK

Euro crisis: 'Rajoy has backed himself in a corner'


The European Central Bank is promising to buy bonds from indebted government in the eurozone, under strict conditions, to try to stabilise the currency.

Peter Spiegel, Brussels bureau chief of the Financial Times, said the ECB's measures leave the politicans "in the place to make the tough decisions", particularly the Spanish prime minister Mariano Rajoy.

He told the BBC Radio 4's Today programme there is a concern Rajoy has "backed himself in a corner" by delaying the request for a bailout package.

"The markets will react very badly if they see more dithering in Madrid," he said.

Former chancellor Lord Lamont, said he is not confident in the new measures.

He explained that they come with a conditionality that would require Mariano Rajoy to apply for a bailout which he does not want to do.

"There are many things that could go wrong with this still," he told James Naughtie.

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