Silvio Berlusconi
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PM Silvio Berlusconi: Italy is financially solid

Prime Minister Silvio Berlusconi has insisted that Italy is "financially solid", despite the country's current economic troubles.

In an address to parliament, he said that politicians must act together with "national cohesion", as stability would help the country "overcome this crisis".

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
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