MADRID - Spanish Prime Minister Mariano Rajoy on Monday reiterated his country was not on the verge of making a bailout request.

"It is not vital at this moment," Rajoy said, adding his government would not make any requests until it had decided what was best "for the general interest of the Spanish people".

"At the moment we have not asked for it, because we do not understand it to be vital to the needs of Spaniards," he stated.

The comments came during a visit by Rajoy's Italian counterpart Mario Monti.

The Italian technocrat also brushed away speculation over a possible Italian bailout request, saying: "We do not think Italy will need to use this instrument."

Both leaders said Greece should remain in the euro and praised the Greek government for measures it was taking to combat its debt crisis.

After their discussions, the leaders signed a declaration requesting the EU put into operation mechanisms to facilitate credit and economic growth in their respective countries.

Rajoy and Monti also opened the forum for dialogue between Spain and Italy, an annual meeting of business leaders from both countries.

Spanish Prime Minister Mariano Rajoy (R) speaks next to Italian Prime Minister Mario Monti during a joint news conference at Moncloa palace in Madrid, Oct 29, 2012. [Photo/Agencies]