Amidst an all-time low approval rate and rapidly withering support from Italy's politicians, Prime Minister, Mario Monti urged parliament to back his economic reforms which include more taxes, austerity measures and pension and labor market reforms. 

"We should use these new difficulties to double our efforts both on the European front and within Italian politics," Monti told parliament in Rome.

Just days after the EU lent Spain's banks up to 100 billion euros, Madrid's debt rating went down from A3 to Baa3 and that country's financial woes are expected to worsen. A Reuters poll of economists revealed that 35 out of 59 thought Spain would follow Greece, Ireland and Portugal in needing a full-state bailout within 12 months.

Germany, a country which has remained practically immune to the EU crisis, urged Italy to implement Monti's draconian measures; declaring that if Italy follows the path charted by their leader, there will be no risk of entering the "danger zone".

Read the full story at Reuters.

 

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