Draghi Urges Italy to Implement Austerity to Avert Spiral

Bank of Italy Governor Mario Draghi said the country must quickly implement austerity measures and boost economic growth to avert an “ungovernable” debt spiral.

“Action must be taken quickly,” Draghi said in a speech in Rome today. “If protracted, the high borrowing costs seen in the last three months could largely offset” the effects of the austerity moves approved last month, “with a further negative impact on the cost of debt, in a spiral that may end up being ungovernable.”