Eurozone crisis: Markets welcome Italy’s crisis plan
INTERNATIONAL markets rallied yesterday after Italy unveiled its battle plan to tackle the country’s debt crisis.
New Italian premier Mario Monti unleashed a package of austerity and growth-boosting measures. Italy’s economic wellbeing is seen as crucial to the future of the euro.
Mr Monti’s package includes 20billion euro (£17billion) of spending cuts and tax hikes and 10billion euro (£8.5billion) of measures to boost growth.
These include taxes on property and luxury goods and increasing the retirement age. Unions blasted pension reform as “socially unbearable”.
But markets appeared to welcome the plan – the yield on Italian 10-year bonds was down 0.21 per cent at 6.35 per cent.
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