(ANSAmed) - Rome, July 23 - The yield on Spain's 10-year bonds
reached a new euro-era high of 7.4% on Monday, ushering in what
will be another difficult week for the eurozone.
The yield spread between the Spanish Bonos and the German
benchmark Bund stood at 627 basis points. The yield spread
between the 10-year Italian Btp and the Bund was 520 points.
In Spain protests over government austerity measures continued as Murcia looks set to become the second autonomous region after Valencia to apply for a central government bailout.
Meanwhile the German weekly Der Spiegel cited allegations by unnamed "official" EU sources that the International Monetary Fund intends to block aid to Greece, leading to a probable deafult in September, on grounds that the country will be unable to reduce its debt to 120% of GDP by 2020 and meet its reform committments.
This would cost Eurozone countries a further 10-50 billion euros in aid and no-one is allegedly prepared to spend any more.
European Central Bank President Mario Draghi said on Sunday that "the euro is irreversible" and that the monetary union is not in danger of "exploding". Germany's constitutional court is due to rule on September 12 on the creation of the permanent European rescue fund for countries with soaring borrowing costs.
Meanwhile Italian Premier Mario Monti is acting on two fronts: foreign and domestic. On Monday he is in Moscow to meet with Russia's leaders and business community. He is then due in Finland to where he will try to overcome Helsinki's resistance to the EU rescue scheme, before heading for Spain. In Italy the government is preparing for a "hot" summer with further spending cuts of between 6 and 8 billion euros.
(ANSAmed)
In Spain protests over government austerity measures continued as Murcia looks set to become the second autonomous region after Valencia to apply for a central government bailout.
Meanwhile the German weekly Der Spiegel cited allegations by unnamed "official" EU sources that the International Monetary Fund intends to block aid to Greece, leading to a probable deafult in September, on grounds that the country will be unable to reduce its debt to 120% of GDP by 2020 and meet its reform committments.
This would cost Eurozone countries a further 10-50 billion euros in aid and no-one is allegedly prepared to spend any more.
European Central Bank President Mario Draghi said on Sunday that "the euro is irreversible" and that the monetary union is not in danger of "exploding". Germany's constitutional court is due to rule on September 12 on the creation of the permanent European rescue fund for countries with soaring borrowing costs.
Meanwhile Italian Premier Mario Monti is acting on two fronts: foreign and domestic. On Monday he is in Moscow to meet with Russia's leaders and business community. He is then due in Finland to where he will try to overcome Helsinki's resistance to the EU rescue scheme, before heading for Spain. In Italy the government is preparing for a "hot" summer with further spending cuts of between 6 and 8 billion euros.
(ANSAmed)
