MADRID (Reuters) Spain vowed yesterday it would not follow ailing neighbour Portugal in seeking a European bailout, and a successful Spanish bond auction suggested markets do not immediately fear contagion.The fall of another euro zone domino following Greece and Ireland focused attention on Madrid, testing the efforts that its government, and European authorities, have poured into erecting a firewall to buttress its public finances.“(The risk of contagion) is absolutely ruled out . . . it has been some time since the markets have known that our economy is much more competitive,” Spanish Economy Minister Elena Salgado told national radio station SER.News that Greece has fallen behind on its deficit reduction target, and rising expectations that Athens will have to restructure its debt, showed that the single currency area has yet to fully resolve the sovereign debt and banking crisis. Caretaker Prime Minister Jose Socrates announced on Wednesday that Portugal was asking for financial assistance from the European Union, saying the economic risks had become too great to go it alone after borrowing rates soared.While European Union officials voiced relief, non-euro zone Sweden criticised Lisbon for waiting too long. “They should have requested aid much earlier,” Swedish Finance Minister Anders Borg told journalists. “They have placed themselves and Europe in a very difficult situation.”Portugal said it would submit a formal request yesterday. A senior euro zone source said Lisbon would have to make clear if its caretaker government has the authority to negotiate a bailout before a June 5 general election.EU officials said a deal would probably be agreed before a new government is elected, signalling Brussels was keen to avoid it being enmeshed in electioneering if possible. But the campaign may nevertheless complicate talks on austerity measures required to secure EU/IMF rescue loans.The main centre-right opposition Social Democrats said they supported the minority Socialist government’s application, but both big parties are seeking to score points by blaming each other for the humiliating resort to aid.The head of the Organisation for Economic Cooperation and Development, an intergovernmental policy think-tank, said Spain would not face the same problems as Portugal because it was addressing key challenges. “Spain has addressed the four things that had to be addressed: the deficit, the labour markets, the pensions and the financial system,” the OECD’s Angel Gurria said in Budapest.European Central Bank President Jean-Claude Trichet confirmed that the ECB, which has been buying Portuguese bonds and propping up its banks with liquidity, had pressed Lisbon to seek assistance.Speaking after the ECB raised interest rates for the first time since before the global financial crisis in July 2008, Trichet said Spain had already done a lot, but needed to continue. The executive European Commission also said Spain was on track to fulfil its deficit reduction targets.By contrast, a source close to Greece’s international lenders told Reuters that Athens’ 2010 budget deficit would be revised to above 10 percent of gross domestic product, requiring corrective measures to stem spillover effects.