Italy’s borrowing costs soared to their highest level in more than a decade amid highly volatile trading as market contagion from Greece forced Silvio Berlusconi to appeal for national unity and “sacrifices” to cut the nation’s debt mountain.
“We are in the front line of this battle,” Mr Berlusconi said, describing a crisis that threatened all of Europe and the future of its common currency.
The Italian prime minister’s appeal was intended to rebut widespread criticism in the Italian media and the markets that his coalition was rudderless and divided by disputes between him and Giulio Tremonti, finance minister.
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