Italy: the final straw to break the eurozone?

Yields on Italian bonds are climbing to alarming new highs amid increased speculation that Italy will need a bail-out. And proposed new powers for the EFSF may be too late to help.

Fears that Italy could be the straw that breaks the back of the eurozone are mounting, as yields on Italian bonds climbed to record euro-era highs. Speculation has shifted towards the country as being the next to require a bail-out, with a political crisis in Rome making it increasingly unlikely the government will be able to deal with its debts.

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