Spain will not be next in line for a rescue package from Europe but a common economic policy is needed to support a single currency, Spanish Economy Minister Elena Salgado told BBC Radio on Friday.

Salgado also said Spain would reduce the number of its banks.

Spain is quickly moving into the eye of the storm in Europe's debt crisis and its cost of borrowing has risen. The country's Prime Minister Jose Luis Rodriguez Zapatero on Thursday also insisted Spain would not need rescue funds but the closer fiscal integration was needed.