JimBowie1958
Old Fogey
- Sep 25, 2011
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Italy collapse would be the 'end of the euro' - RT News
Italies debt would seem to be the Gettysburg of the EU; they either win this or the whole thing gradually unravels.
But can they save Italy? If they do, maybe they can stop the contagion where it stands.
As I u nderstand it the growing problem is that the underlying poisonous real estate credit is destroying credit in Europe faster than it can be created.
France and Germany have warned that a blow-out in Italy's giant debt mountain would signal "the end of the euro."
Italy had to pay record rates to raise 10bn this morning, while France and Germany warn that a blow-out in its giant debt mountain would signal "the end of the euro."
Meanwhile, EU Economic and Monetary Affairs Commissioner Olli Rehn has upped the pressure on Italian Prime Minister Mario Monti's new government, calling for "an ambitious timeline" on economic reforms.
"Italy is faced with formidable challenges," Mr Rehn told Italian lawmakers during a visit to Rome.
"The new government needs to deliver on fiscal consolidation and adopt bold measures to re-launch growth," he said.
''Full and effective implementation will be key," he said, adding: "It would be essential to give strong signals to citizens and markets with a clear and ambitious roadmap for reform and an ambitious timeline."
In its bond auction, Italy was forced to pay a rate of 6.504% on bonds due in six months and 7.814% on bonds due in two years - dangerous levels that analysts say could drive Italy insolvent within months.
Italies debt would seem to be the Gettysburg of the EU; they either win this or the whole thing gradually unravels.
But can they save Italy? If they do, maybe they can stop the contagion where it stands.
As I u nderstand it the growing problem is that the underlying poisonous real estate credit is destroying credit in Europe faster than it can be created.