• SABC shenanigans

    SA has already embarked on a slippery slope to autocracy, warns Terry Bell in Inside Labour.

  • Zim tastes people power

    Protests in Zimbabwe are forcing Mugabe to face anti-government sentiment, says Memory Mataranyika.

  • Platinum handshake

    Officials who try to do what's right risk far more than blessed wrongdoers, says Solly Moeng.

All data is delayed
Loading...
See More

Monti: Italy will not need bailout

Jun 13 2012 08:57
AP

Rome - Italian Prime Minister Mario Monti has denied speculation that Europe's third-largest economy could be the next to apply for European Union assistance.

"Italy even in the future will not need aid from the European Financial Stability Fund," Monti told German public broadcaster ARD late on Tuesday.

His comments came after the country's 10-year yields early Tuesday reached 6.16%, their highest point since January, amid concerns over its spiralling cost of borrowing.

Italy may have high levels of public debt, Monti said, but "very low public debt" among companies and households. The high cost of borrowing was simply due to "tensions on the market", he said.

In addition, the deficit was far lower than in many other European countries, was projected to be 2% this year, and would reach a surplus in 2013, he said.

"I can understand that Italy, because of its past, can be seen as a fun-loving, undisciplined country," Monti told the radio station. "But now it is more disciplined than many other European countries, and it is not even particularly fun."

He also said that Italy is contributing to the bailouts to help Greece, Portugal, Ireland and Spain.

While the country's banks are in a stronger position than their Spanish counterparts, its economy is still in recession and predicted to shrink by 1.7% this year by the Organisation for Economic Cooperation and Development.

On Monday, Italian Industry Minister Corrado Passera rejected the notion that his country may need external help, describing Italy as "among countries better placed to deal with the financial turmoil Europe finds itself in".

But Austrian Finance Minister Maria Fekter late on Monday refused to rule out the possibility of assistance to Italy, in comments criticised by Monti.

A test of investor confidence in Italy is expected on Thursday when the treasury is to offer up to €4.5bn of fixed-rate bonds at its regular mid-month auction.

mario monti  |  italy  |  europe debt crisis

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.
 

Company Snapshot

We're talking about:

THE SAVINGS ISSUE

Saving can make a lot of things possible, but we all know how hard it is to save. This special Savings Issue will help you get focused.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Sarb's decision to keep the repo rate unchanged is:

Previous results · Suggest a vote

Loading...