Italy walks close to greek syndrome

As Moody’s warned EU sovereign ratings are under threat, Morgan Stanley lowered its outlook for Asia and Italy looked set to be overwhelmed by its debt

As Moody’s warned EU sovereign ratings are under threat, Morgan Stanley lowered its outlook for Asia and Italy looked set to be overwhelmed by its debt

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120% Italy's public debt, as a proportion of its gross domestic product
The country’s borrowing costs are again at the levels which triggered the collapse of the Silvio Berlusconi government

Yields on 10-year bonds ended last week at more than 7.3%

Italian yields are now in the territory that forced Greece, Italy and Portugal to seek international bailouts

Prime Minister Mario Monti is expected to unveil measures likely to include a revamped housing tax, a rise in sales tax, accelerated increases in pension age and a form of wealth tax.