Financial market pressure on Italy intensified on Tuesday, sucking Europe's biggest debtor nation deeper into the euro area danger zone and prompting Italian authorities to call emergency talks.And Spain:
Italian bond yields hit their highest level in the euro's 11-year lifetime, ominously reaching the same level as Spain's in a sign that Rome is overtaking Madrid as the main focus of investors' concern about debt sustainability.
Economy Minister Giulio Tremonti called a meeting of the Financial Stability Committee -- made up of representatives of the government, the Bank of Italy, market regulator Consob and insurance authority ISVAP -- a day before Prime Minister Silvio Berlusconi is due to break his silence and address parliament.
All of which has prompted Chantal Hughes, speaking for Economic Affairs Commissioner Olli Rehn, to issue a denial that bailouts will be necessary for these countries:
José Luis Rodríguez Zapatero, Spanish prime minister, on Tuesday delayed a planned holiday in southern Spain to supervise his government’s response to the sharp fall in the price of the country’s sovereign bonds.
Amid growing alarm in Madrid over the possibility that Spain will become the next eurozone country to need a bail-out from the European Union and the International Monetary Fund, Mr Zapatero’s office said he would delay a trip to the Doñana national park in southern Spain “to follow more closely the movement of economic indicators”.
The European Commission said Tuesday that debt rescue planning for Spain, Italy and Cyprus was not on the cards, despite bond yields for the big two hitting the highest levels since the euro was created.Which means of course another crisis is imminent.
"The question of a programme of emergency aid is certainly not on the table," said Chantal Hughes, speaking for Economic Affairs Commissioner Olli Rehn, after Spanish Prime Minister Jose Luis Rodriguez Zapatero delayed a holiday departure to keep tabs on growing economic concerns.
That came after the difference in borrowing costs for Spain and Italy, against benchmark Germany, rose sharply in Tuesday bond trading
However in more important news, Cameron didn't tip a waitress and he wore office shoes whilst being sockless, while on holiday.