Friday, September 2, 2011

ECB steps up pressure on Italy as debt worries grow

By James Mackenzie


ROME (Reuters) - European Central Bank President Jean-Claude Trichet told Italy's struggling center-right government to deliver on its promised austerity package, adding to international pressure on weakened premier Silvio Berlusconi.


ECB support is vital because Trichet's bank has been buying Italian bonds in markets to keep yields low enough for Rome to continue borrowing without needing to reach out for outright aid from the EU or IMF.



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