Austrian FinMin Softens Statement on Italian Bailout Issue

Maria Fekter, Australian Finance minister said on Tuesday during a TV interview, that a bailout would be asked by Italy shortly, which European Union will probably not be able to afford. Prime Minister Mario Monti of Italy acted in response to the statement given by the Aussie Finance Minister that “It is totally inappropriate for ministers to comment on issues referring to other countries, and as such I won’t comment her comments.” Then later on the same day, Maria Fekter told the reporters that she did not see any signs of Italy asking EU for bailout funds.

That day the investors worried about contagion from Greece and Spain that caused the risk premium grow to 480 points and the ten-year bond yield of Italy to grow to 6.15%.

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