Proof that the eurozone debt crisis is far from over came as Prime Minister Mario Monti of Italy said he might look for financial help from the rescue fund to shore up the country’s bonds.
Reuters reported Wednesday that Monti addressed the issue on Tuesday after a meeting of finance ministers in Brussels. Italy’s borrowing costs have risen to the point that they could reach unsustainable levels above 7%. Yields fell below 6% on Tuesday after having risen above it the day before, as markets worried that Italy would be the next nation to succumb to debt woes. Italy, the eurozone’s third-largest economy, is seen as too big to bail out, and the mere suggestion that it might require aid was another factor to worry already-spooked investors.
Speaking of the European Stability Mechanism (ESM), Monti was quoted saying, “It would be hazardous to say that Italy would never use (the ESM). Italy may be interested.”