A European Commission official says bailing out Spain is a very clear sign that the euro zone is ready to take action to resolve the region’s debt crisis and bring stability to the financial market.

Vice President of the European Commission responsible for Economic and Monetary Affairs and the Euro, Olli Rehn, told Reuters that he believes the bailout will send a strong signal to the market.

He said that Spain will be required to reform its banking industry as a provision of the bailout. But the economic commissioner said that Spain has been implementing austerity measures already and it will not face other conditions.