The leader of Italy foresees a disastrous breakup of the 17-nation euro zone unless strong efforts follow to slash borrowing costs, according to an interview with a German news source that was cited by Bloomberg.
Prime Minister Mario Monti told Der Spiegel that disagreements with the central bank of Europe regarding help for Italy and Spain also are becoming more edgy. He said tensions are driving toward disintegration of the euro zone and he recommends rapid solutions.
But one managing director said Monti and the nation he leads are in an enormously precarious position.
"Italy has, to all intents and purposes, been hung out to dry," states an email to Bloomberg penned by managing director Nicholas Spiro with Spiro Sovereign Strategy. "As far as Rome is concerned any external assistance would be the kiss of death. This puts Mr. Monti in an untenable situation."
The sovereign debt scourge has victimized several euro zone nations and Italy is working to stave off threats to its solvency and stability.
Reuters reports the website of Spanish Prime Minister Mariano Rajoy indicates the leader spoke with U.S. President Barack Obama on Monday and the two discussed Spain's situation with the sovereign debt crisis.
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