Italy at heart of crisis as borrowing costs climb |
| Reuters - Oct 28, 2011 |
Italy's borrowing costs jumped to record levels on Friday, underlining its vulnerability at the heart of the euro zone debt crisis and scepticism about whether the struggling government of Prime Minister Silvio Berlusconi can deliver vital reforms.
The 6.06 percent yield paid at an auction of 10-year bonds was the highest since the launch of the euro and not far from the level reached just before the European Central Bank intervened in August to cap Rome's borrowing costs by buying Italian paper.
Italy, the euro zone's third largest economy, is once more at the centre of the debt crisis, with fears growing that its borrowing costs could rise to levels that overwhelm the capacity of the bloc to provide support amid chronic political instability in Rome.
Berlusconi in a speech in Rome said the record yield would weigh on the country's finances, but insisted Italy would meet its target of balancing the budget by 2013.
Read Full Article from Reuters
- Posted: 2011-10-28 13:26:45
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