Debt pressure in Italy mounts, as the government had to apply record-high interest rates to sell them on Tuesday. Market fears are that the country is losing control over its huge public debt and that it could be the causal factor in triggering a crisis within the Euro Zone.
Prime Minister Berlusconi of Italy has confirmed that an austerity plan worth $73 billion dollars would be approved by parliament on Wednesday and that other measures are being sought to boost growth. Reports are out that Rome has also asked China to buy Italy bonds, but the euro fell against the dollar even after the results of that.
Debt pressure in Italy is now considerably high, with the debt level currently at about 120 percent of its output. Until now it has been depending on the European Central Bank, but now the surge in yields of late indicates a loss of faith in the market regarding ECB’s role in keeping the balance. With regards to China, a Treasury spokesperson confirmed that the Italian economy minister Giulio Tremonti had indeed had a meeting with officials from China but whether it was regarding a sale of bonds, as reported by the Financial Times, was not confirmed.
Image By: www.la-moncloa.es
Related Post for Amazon to start collecting California tax next year
Hillary Clinton on top of poll ratingGeither debt crisis plea goes unheeded in Poland
BofA cuts lead to PNC, others increasing their reach
Amazon to start collecting California tax next year