The Spanish Deputy Prime Minister says the government there will not be seeking a bailout.

Soraya Saenz told reporters in Madrid that the country does not need a rescue package and that it would not need an extension of the €100 billion committed to its banks.

Meanwhile the leaders of France and Germany have pledged to do everything in their power to protect the Eurozone.

In a joint statement issued after a telephone conference this afternoon German Chancellor Angela Merkel and French President Francois Hollande said Eurozone members and institutions must meet their responsibilities.

On Tuesday Spanish borrowing costs reached their highest level since the country adopted the Euro hitting 7.64% for 10-year bonds.

But on Thursday European Central Bank (ECB) President Mario Draghi said the Central Bank was ready to act to bring down Spanish yields and the 10-year yield fell to 6.88%.

Spain has repeatedly said it would not need to follow Ireland, Portugal, and Greece in seeking a full bailout.