Prime Minister Silvio Berlusconi
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Berlusconi address to MPs on Italian economy

Prime Minister Silvio Berlusconi is addressing parliament, as concerns mount over the Italian economy.

A 43bn-euro ($62bn; £38bn) austerity package was approved last month, but there is some doubt about whether Mr Berlusconi's government can implement the cuts.

Yields on Spanish and Italian 10-year bonds hit their highest levels since the launch of the euro on Tuesday, meaning that it would cost both countries' governments more to borrow money if they wanted to.

  • 03 Aug 2011
  • From the section Europe