This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-15617132
The article has changed 14 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Italy government borrowing rates hit euro-era high | Italy government borrowing rates hit euro-era high |
| (40 minutes later) | |
| The Italian government's borrowing cost has risen in early trade as fears grow over political uncertainty in Rome. | The Italian government's borrowing cost has risen in early trade as fears grow over political uncertainty in Rome. |
| The yield on Italian 10-year bonds rose from 6.37% to a euro-era high of 6.64%. | The yield on Italian 10-year bonds rose from 6.37% to a euro-era high of 6.64%. |
| It is feared that Italy, the eurozone's third biggest economy, could become the next victim of the debt crisis. PM Silvio Berlusconi faces a crunch vote on public finance on Tuesday. | It is feared that Italy, the eurozone's third biggest economy, could become the next victim of the debt crisis. PM Silvio Berlusconi faces a crunch vote on public finance on Tuesday. |
| European shares also fell in morning trade with markets in London, Frankfurt and Paris all down more than 1%. | European shares also fell in morning trade with markets in London, Frankfurt and Paris all down more than 1%. |
| The main Italian index, the FTSE MIB, was also down 1.1%, while the Spanish Ibex fell 2.5%. | The main Italian index, the FTSE MIB, was also down 1.1%, while the Spanish Ibex fell 2.5%. |
| Concerns over Italy are overshadowing developments in Greece, where Prime Minister George Papandreou has agreed to stand down. | Concerns over Italy are overshadowing developments in Greece, where Prime Minister George Papandreou has agreed to stand down. |
| Mr Papandreou sealed a deal with the opposition to form a new coalition government to approve an EU-IMF bailout package. | Mr Papandreou sealed a deal with the opposition to form a new coalition government to approve an EU-IMF bailout package. |
| Once the vote has been passed, it will open the way for Greece to receive the next 8bn euro tranche of bailout loans. | Once the vote has been passed, it will open the way for Greece to receive the next 8bn euro tranche of bailout loans. |
| The deal was welcomed by investors, with the main Athens bourse up 2%, lifted by the banking sector. Shares in Alpha Bank were up 7.8% while Hellenic Postbank rose 11.4%. | The deal was welcomed by investors, with the main Athens bourse up 2%, lifted by the banking sector. Shares in Alpha Bank were up 7.8% while Hellenic Postbank rose 11.4%. |
| 'Beginning of the end' | 'Beginning of the end' |
| The markets are viewing Italy's ability to repay its debt as increasingly doubtful. | The markets are viewing Italy's ability to repay its debt as increasingly doubtful. |
| The spread between Italian and German 10-year government bond yields widened to 488 basis points, its widest level since 1995. | The spread between Italian and German 10-year government bond yields widened to 488 basis points, its widest level since 1995. |
| The yield on Italian one-year bonds also jumped to 6.3% from 5.5% on Friday, compared with 0.26% for German one-year bonds. | The yield on Italian one-year bonds also jumped to 6.3% from 5.5% on Friday, compared with 0.26% for German one-year bonds. |
| Richard Hunter, head of equities at Hargreaves Lansdown stockbrokers in London, said the worries over Italy were not so much about the economy but about the state of the political situation. | Richard Hunter, head of equities at Hargreaves Lansdown stockbrokers in London, said the worries over Italy were not so much about the economy but about the state of the political situation. |
| "This may be the beginning of the end for Berlusconi," he told the BBC. | "This may be the beginning of the end for Berlusconi," he told the BBC. |
| "We're talking about a completely different animal when it comes to Italy [compared with Greece]. | "We're talking about a completely different animal when it comes to Italy [compared with Greece]. |
| Crisis jargon buster Use the dropdown for easy-to-understand explanations of key financial terms: AAA-rating The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is miniscule. Glossary in full | Crisis jargon buster Use the dropdown for easy-to-understand explanations of key financial terms: AAA-rating The best credit rating that can be given to a borrower's debts, indicating that the risk of borrowing defaulting is miniscule. Glossary in full |
| "Greece is responsible for 2% of [the eurozone's] GDP whereas Italy is the third biggest economy behind Germany and France." | "Greece is responsible for 2% of [the eurozone's] GDP whereas Italy is the third biggest economy behind Germany and France." |
| Pressure is growing on Mr Berlusconi, with the opposition also preparing a vote which is being seen as one of no confidence in the prime minister. | |
| Euro discussions | Euro discussions |
| Eurozone finance ministers are due to meet later, when they are expected to discuss the latest on Greece and mechanisms for expanding the European Financial Stability Facility (EFSF) bailout fund. | Eurozone finance ministers are due to meet later, when they are expected to discuss the latest on Greece and mechanisms for expanding the European Financial Stability Facility (EFSF) bailout fund. |
| Leaders have agreed in principle to boost the EFSF from its current 440bn euros (£375bn) to 1 trillion euros, in order to tackle debt problems in Italy and Spain. | Leaders have agreed in principle to boost the EFSF from its current 440bn euros (£375bn) to 1 trillion euros, in order to tackle debt problems in Italy and Spain. |
| On Tuesday, finance ministers from the full EU will meet. | On Tuesday, finance ministers from the full EU will meet. |
| Last week, world leaders from the G20 countries agreed to boost the resources available to the IMF, but gave but no detail on plans for the eurozone. | Last week, world leaders from the G20 countries agreed to boost the resources available to the IMF, but gave but no detail on plans for the eurozone. |
| Meanwhile, representatives from the European Commission, the European Central Bank and the International Monetary Fund (IMF) - the so-called troika - are in Lisbon on Monday for their latest evaluation of how Portugal is implementing its bailout package. | Meanwhile, representatives from the European Commission, the European Central Bank and the International Monetary Fund (IMF) - the so-called troika - are in Lisbon on Monday for their latest evaluation of how Portugal is implementing its bailout package. |
| Are you in Italy? Are you concerned about the effect the eurozone crisis is having on Italy? How is the Italian government handling the situation? Does Silvio Berlusconi have your support? Send us your comments using the form below: |