Spain is inching closer to a sovereign bailout to save its economy but the country is cagey about the prospect of harsh austerity measures like the ones introduced in crisis-hit Greece. Spanish Prime Miinister Mariano Rajoy indicated for the first time that the country could be ready to seek EU aid. However, he said he first wanted to know the conditions attached to such a deal and the form the rescue would take. At a news conference on Friday - the first he has attended after the weekly cabinet meeting since he took power in December - Rajoy said no decision could be taken until further details are agreed. However, he said he was ready to do what is best for the country. Many analysts believe a bailout for Spain is inevitable, but this is the first time Rajoy has publicly acknowledged it. Even as recent as Thursday Rajoy avoided speaking on the matter. During a press appearance with Italian Prime Minister Mario Monti, he three times declined to say whether he would seek aid and trigger a concerted action of the European Central Bank and the European Union rescue funds to bring down Spain's borrowing costs. However, he said today: 'I will do, as I always do, what I believe to be in the best interest of the Spanish people.' Referring to a comment made by European Central Bank president Mario Draghi that the bank was examining non-conventional measures to defend the euro, Rajoy said: 'We still don't know what these measures are.'

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