Monti’s Overhaul Can’t Stop Pain From Spain: Euro Credit
This article is for subscribers only.
Prime Minister Mario Monti’s efforts to overhaul the economy and protect Italy from the region’s debt crisis may be overwhelmed by Spain’s deepening fiscal woes and the fading effect of European Central Bank three-year lending.
Monti sent parliament a plan last week to revamp the labor markets, which represents the most ambitious of his four major legislative efforts to make the Italian economy more competitive. The draft law was greeted on April 4 by a 9 basis point increase in the country’s 10-year bond yield to 5.43 percent as Spain’s debt slumped on renewed concern the country would need a bailout.