German Chancellor Angela Merkel is “impressed” with the “speed and consistency” of the structural reforms pushed forward by Spain’s Prime Minister Mariano Rajoy‘s government, she said in the press conference in Madrid on Thursday afternoon, following a lunch meeting between the two leaders. She said “it will take time” to see the “effects” of the reforms.

At the same time as the press conference was held in the Moncloa government headquarters, the European Central Bank president Mario Draghi presented a bond buying plan that opens the possibility for the central bank to buy Spanish sovereign debt in order to ease pressure on the country. This would only be done if Spain formally requests a rescue from Europe, however, Draghi said, adding that it will also be donw under “strict conditionality.”

Rajoy said his government “has not decided yet” if it will formally request help from Europe, despite the announcement from the ECB on Thursday, and the fact that Berlin will not request more reforms.

“When I have some news I will tell you. I have not yet had time to read the statement by Mario Draghi,” he said during the press conference, where he confirmed that the chancellor had not asked for more reforms in Spain.

Merkel confident in Rajoy

Merkel added that Germany and Spain “are on the right path to create a future Europe” and she said she was “certain” that the difficulties that the Eurozone are experiencing now will be overcome. “We are committed to defend the single currency,” she said.

“It will take time until one can see the effects of the reforms in Spain in terms of employment,” she said. “It is a difficult part of the road, but I am certain that this is the right path.”

“I will not say which reforms Spain should do,” she added. “I have full confidence in Rajoy, who has decided on necessary measures.”

Merkel was positive about the cooperation between the Spanish central state and the autonomous regions in order to consolidate the public accounts. She also said that in Europe “more is being done than over the last 15 years and at a very high speed.”

This article was translated and edited by Stina Lunden.