European Union Economic and Monetary Affairs Commissioner Olli Rehn has said that Belgium, Cyprus, Hungary, Malta and Poland are not doing enough to cut their deficits. How DO these people know?
The good news is that Italy has managed to shift 5 billion euros-worth of one-year bonds at a rate of 6.087%. That means that in 12 months, the Italian government will have to repay those bonds at over 5.3 billion. By then, it will have to borrow more in order to redeem the 5.3 billion etc etc.
This bond issue is, of course is a mere drop in the ocean if set against the 1.4 TRILLION which they will probably need for a bailout.
Within a few weeks, Italy’s president Giorgio Napolitano will attempt to form a new government. With Italy’s past electoral history, the creation of a new administration will make the Greek efforts look like a W.I. meeting.