Italy begins to suffer under the weight of its debt in GDP

The economy of the eurozone Ministers considered options more radical to enhance their financial instruments to help Italy, the third-largest economy in the region, which yesterday suffered a hard onslaught in the markets of debt.

The 17 heads of euro-zone economy considered mechanisms to strengthen the capacity of the European Fund for financial stability (EFSF), amounting to about 250,000 million euros, after aid to Ireland and Portugal.

But also discussed various ways to obtain lines of credit. The Luxembourg Minister, Luc Frieden, explained that the "only EFSF not can solve all problems, so we have to do with the Central Bank (ECB) European and the International Monetary Fund (IMF)".

Today the debates will be extended to 27 members of the European Union, to prepare the European Summit of 8 and 9 December. The idea is to find a solution as soon as possible to help Italy. The Treasury u000aItalian managed to put 7,500 million euros in bonds at three, nine and 11 years, but at rates record that exceeded the threshold of 7%, a level widely considered unsustainable in the long term for the country with a debt of 1.9 billion euros (120% of GDP).

The meeting in Brussels was attended by the head of Al Government Italian, Mario Monti,, who is also Minister of economy, to present their plans in order to reduce its huge debt.

The European Commission requested Italy to carry out further reforms and implemented them quickly to meet the objectives of deficit, according to a report delivered to the Finance Ministers of the zone euro.

"Italy must act quickly given the considerable challenge...," stresses the document. According to the Italian press, the country may need a new plan of adjustment amounting to 20,000 million euros.

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