Skip to content
Subscriber Only

Merkel Takes Aim at Italy, Demands Eurozone Countries Cut Debt

Chancellor Angela Merkel took aim at Italy as typifying profligate government, saying the resolution of Europe’s crisis will only emerge if countries slash their debt and live within their means.

Italy’s outstanding debt at 120 percent of gross domestic product can’t be blamed on speculators, Merkel told a group of women in her Christian Democratic Union today. Markets demand higher interest rates on Italian bonds because the level of such debt is “seen very critically,” she said.