Italian Prime minister Mario Monti in Rome, Friday, July 20, 2012. THE CANADIAN PRESS/AP, Mauro Scrobogna, Lapresse
MILAN - Italian Premier Mario Monti says the debt crisis has spread to Italy and that the country must try to avoid taking a bailout.
At a news conference Friday, Monti says the financial turmoil has weakened trust in the euro currency project.
He emphasized that Italy does not need further budget measures to raise revenue and shore up public finances.
Italy's borrowing costs have risen steadily in recent weeks due to fears that the government will not be able to handle its high debt load. On Friday, the 10-year bond yield was up 0.23 percentage points at 6.13 per cent.
The Confindustria industrial lobby estimates Italy has burned up 0.9 per cent of GDP during the crisis by paying higher interest rates when raising money in bond markets.