ROME — A week into his new job, Premier Mario Monti is running
out of time to reassure nervous investors that his government has a
strategy to deal with Italy’s crippling debts.
The nation’s borrowing rates skyrocketed Friday after a grim
set of bond auctions, with a new auction looming Tuesday. Another
borrowing debacle could ratchet up fears that Italy has entered a debt
spiral driving it toward bankruptcy and the 17-nation eurozone into its
most acute crisis yet.
Monti’s government of so-called “technocrats” is battling to convince
investors that it has a successful strategy to reduce the country’s €1.9
trillion ($2.6 trillion) debt. But Friday’s dismal bond auction results
for the eurozone’s third largest economy temporarily battered Europe’s