Just so you know, dear reader, Reuters writes that raising
the stakes in Europe's debt crisis, Austria's finance minister said Italy, the
euro zone's third economy, may need a financial rescue because of its high
borrowing costs. Maria Fekter's comments
in a television interview amplified investors' fears that Europe's leaders are
far from ending two and a half years of turmoil. A deal by euro zone finance
ministers on Saturday to lend Spain up to 100 billion euros ($125 billion) to
recapitialize its banks was seen by many
in the markets as yet another sticking plaster.
Euro zone rescue funds, already stretched by supporting
Greece, Portugal, Ireland and now Spain, might be insufficient to cope with
Italy as well, Fekter added in the interview on Monday evening. On Tuesday she
sought to soften her remarks, saying she had no indication Italy planned to
apply for aid.
"Italy has to work its way out of its economic dilemma
of very high deficits and debt, but of course it may be that - given the high
rates Italy pays to refinance on markets - they too will need support," Fekter
said...
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