Mariano Rajoy, the Spanish prime minister, clarifies his government's stand on the bailout deal with EU, saying it is "good for Spain and good for euro".

He termed the deal as a "line of credit" for ailing financial sector in the country.

The Spanish prime minister says the deal was part of his government's goal to clean up financial institutions in the country.

Rajoy says economic situation in Spain was delicate and the government cannot do any miracle.

Spain needed structural reforms for making it flexible and competitive, he said.

He also talked about restructuring financial and banking system so that credit could flow into the banking system.

Rajoy said he would control public expenditure and take further steps to improve financial sector.

The PM said his decisions are hard and difficult but paramount. "Our government exactly knows where we are heading," he said.