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Italy is facing a twin fiscal and political crisis (Photo: Alessandro Marotta)

Italian bonds shatter 7% bail-out ceiling

The interest rate on Italian 10-year government bonds breached seven percent on Wednesday, shattering the psychological bail-out ‘ceiling’.

Greece, Portugal and Ireland all had to seek multi-billion-euro bail-outs when their 10-year bonds exceeded this threshold.

The cost of government short-term borrowing for the country exceeds even these levels, with one-year bonds having soared to above eight percent.

The development has EU leaders scrambling to respond to the deteriora...

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