According to El Mundo, Spanish PM Mariano Rajoy sent a stunning text message to FinMin Guindos prior to the bailout negotiations.
He said, according to El Muno editor Pablo Rodriguez: “Resist, we are the 4th power of the EZ. Spain is not Uganda.”
Translation: We’re a major power, not some random IMF-case banana Republic.
The followup message (according to Google translate) “if you want to force the redemption of Spain will prepare 500,000 billion euros and another 700,000 for Italy, which will have to be rescued after us.”
Bottom line: hold out for something good. We are powerful, and if they don’t give in, the whole thing will go down. It will cost Europe 500 billion if Spain goes bust, and then another 700 billion if Italy goes bust.
No wonder Der Spiegel, which represents the German point of view, has an article blasting Spanish blackmail.