Italy sold 8.5 billion euros ($11.1 billion) of one-year Treasury bills at the lowest in three years as bond investors bet that caretaker Prime Minister Mario Monti’s economic policies will continue even if he doesn’t become premier for a second time.
Prime Minister Mario Monti’s emergency budget plan won final approval in Parliament today as Italy struggles to tame surging borrowing costs before facing 53 billion euros ($69 billion) in debt repayments early next year.
The Italian economy contracted in the third quarter, signaling the country may have entered its fifth recession since 2001 as the government adopts new austerity measures that will further weigh on growth.
By his own reckoning, since becoming Italy’s prime minister, Silvio Berlusconi has endured 105 judicial probes and trials and 2,500 court hearings, and spent more than 300 million euros ($409 million) in legal fees defending himself against allegations of tax fraud, bribery, corruption, and more. That’s 48,000 euros a day since he was first elected in 1994, when he parlayed his celebrity as a media baron and one of Italy’s richest men into a political career.
Prime Minister Mario Monti is taking charge of the final round of talks to overhaul Italy’s labor market as he seeks to convince unions that easing firing rules will help bring down a decade-high unemployment rate.
Germany and France powered economic growth in the euro area in the first quarter as booming exports fueled domestic spending in the bloc’s core, offsetting turmoil sparked by sovereign debt woes in Greece, Ireland and Portugal.