Italy’s Borrowing Cost Hits New Record

The yield on Italian 10-year bonds rose to a Euro-era record high of 6.73 percent on growing fears that Italy will be unable to meet its debt repayments. Berlusconi’s grasp on the Prime Minister’s office grew more tenuous overnight as more members of his government called for his resignation.

Despite the questions surrounding his political survival, Berlusconi has said he will continue with a vote to implement further fiscal reform to reduce the country’s out0of-control deficit.

“Italy knows, that given the size of the country, it can’t hope to get help from outside,” noted Austrian Finance Minister, Maria Fekter. “That’s why these huge efforts are made in Italy at the moment.”

Source: BBC News

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