If you’re having trouble with debt then at least you can take some solace in that fact that you’re not the only one! As we all know, Greece has been having major problems with debt over the last few months (or years), and now it seems like Italy is in trouble too.
Today it’s been announced that Italy have a high cost of borrowing than ever before in the Euro. IN the ten years since the Euro was first used in Italy, the yield on certain bonds has risen to 6.73%. This is obviously bad news for the country, but especially bad news for Mr Berlusconi who has been asked by many people (including some of his closest allies) that he should step down.
Seeing as Ireland, Greece and Portugal have already had to be bailed out it doesn’t seem unlikely that there could be major problems in the future from Italy. Some finance ministers from various countries around the Euro zone has said that Italy is too big to receive significant help from other countries, so it’s going to have to sort things out itself. This is why the government there are trying to do everything possible to get things back on track.
The effect that this is going to have on debt and the global economy in general over the next few months is difficult to judge at the moment. We’ll try to keep this blog updated with the latest news, although the BBC website has a lot of good information on it if you want to find out more about the crisis.