June 18, 2012 / 5:43 PM / 6 years ago

Spain says Europe working towards fiscal union

LOS CABOS, Mexico (Reuters) - Spanish Economy Minister Luis de Guindos said on Monday that European leaders are united and working towards fiscal integration as they try to fend off a deepening debt crisis.

“I think that European leaders are united, we know perfectly well that we are all in the same boat,” he told reporters on the sidelines of a Group of 20 summit in Mexico.

“We know perfectly well that we have to keep going in one direction, in the direction of making more progress towards fiscal union and banking union and there, for example, I think that decisions can be taken very quickly and we could see those in the next few days.”

Leaders from France, Germany, Spain and Italy are due to meet on Friday ahead of a wider EU summit on June 28-29, where they aim to lay out a roadmap for closer fiscal links.

De Guindos also said that Spanish bond yields, which earlier on Monday hit a new euro-era high above 7 percent, do not reflect the potential of the Spanish economy or the reforms already undertaken to cut its budget deficit and make the country more competitive.

“We think ... that the way markets are penalizing Spain today does not reflect the efforts we have made or the growth potential of the economy,” he said. “Spain is a solvent country and a country which has the capacity to grow.”

Reporting by Krista Hughes; Editing by Kieran Murray

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