Italy at heart of crisis as borrowing costs climb (19)

ROME – Italy’s borrowing costs jumped to record levels on Friday, underlining its vulnerability at the heart of the eurozone debt crisis and skepticism about whether the struggling government of Prime Minister Silvio Berlusconi can deliver vital reforms.

The 6.06% 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 eurozone’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.

Mr. 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.

Mr. Berlusconi, tainted by scandal and repeatedly at odds with his coalition allies, has promised European partners a package of measures to spur Italy’s stagnant economy and cut its towering public debt, but he has failed to convince markets made skeptical by his repeated failure to deliver reforms.


See Also:

Whitehall officials urgently review Britain’s EU membership

Silence on human rights…the price Europe must pay for China’s billions

Fight for Britain, Prime Minister! Mail poll shows massive majority want powers back from EU

Heffer: The majority of people now want out of this bloated dictatorship, we at least need a referendum

Europe’s debt crisis strategy suffers setback 

German Bunds Fall on EU Debt-Plan Optimism; Italian Bonds Drop

Italy gives EU a post-party hangover

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Afternoon Updates:

12:18 pm EDT, October 29th, 2011 — Hastings: Cosy up to the dragon at your peril

12:21 pm EDT, October 29th, 2011 — Norman: The world is at the mercy of irrelevant pygmies like Silvio Berlusconi and Nicolas Sarkozy

12:23 pm EDT, October 29th, 2011 — Czech PM mulls euro referendum

12:25 pm EDT, October 29th, 2011 — Editorial: Europe’s sticking plaster will not heal the wounds

12:26 pm EDT, October 29th, 2011 — Battling the Financial Lobby in Brussels

12:30 pm EDT, October 29th, 2011 — Attempts to fix EU debt crisis emboldens euroskeptic nationalists

12:33 pm EDT, October 29th, 2011 — UPDATE: Emerging Mkts Push For Greater ECB Role In EU Debt Crisis -Officials

12:39 pm EDT, October 29th, 2011 — Eurozone rescue fund tries to tempt China with bonds issued in yuan

12:41 pm EDT, October 29th, 2011 — EU to China: Let’s make a deal

12:47 pm EDT, October 29th, 2011 — President warns Greeks of political and cultural changes

12:59 pm EDT, Octber 29th, 2011 — Caldwell: Europe runs out of money

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  • Jack

    And so it goes. More bad news for the EU this day. I hate to be the one reporting this (no other “news aggregator” appears to be focused yet) but I feel the link at 12:21 says it best. The people expected to resolve this crisis are the one’s least qualified to sort it out.

    And therefore the mess.

    I have no hope that the EU can save itself and it would be much better if they admitted they have moved to far to fast and began the process of dismantling it and changing back to what it was in the beginning — a trade union.

    That will work and perhaps save the idea for a time far in the future when they can try again. China is not an option unless they enjoy economic slavery and that is what they are contemplating this day.

    My view: “Don’t go there.”

    There are better choices.