EU denies pushing bailout plan

European officials denied “absolutely false” reports Portugal was under pressure to seek a bailout and Spain ruled out on Friday needing help to manage its finances,despite fears of a spreading euro debt crisis.

The Financial Times Deutschland quoted unidentified sources as saying some euro zone states wanted Portugal to seek aid in order to avoid Spain,the fifth largest EU economy,from having to follow suit.

“If Portugal were to use the fund,it would be good for Spain,because the country is heavily exposed to Portugal,” the paper quoted a source in Germany’s finance ministry as saying.

EU Commission President Jose Manuel Barroso dismissed the FT report,echoing a vehement denial by Portugal.