Italy's Tremonti, eurozone chief Juncker hold crisis talks

3rd August 2011, Comments 0 comments

Italy's Finance Minister Giulio Tremonti headed into crisis talks Wednesday with eurozone chief Jean-Claude Juncker as Europe's third largest economy faced mounting pressure on the bond markets.

Tremonti made no statement on arrival for the meeting with Juncker, the prime minister of Luxembourg who heads the eurogroup of finance ministers of the 17-nation eurozone.

The talks follow a dramatic day on the financial markets as Italian and Spanish sovereign debt risk premiums soared to euro-era record highs, threatening to ensnare two major eurozone countries in an expanding debt crisis.

Spain's prime minister delayed plans to leave on vacation and Tremonti met with the central bank and stock market authorities to grapple with the growing emergency.

The eurozone debt crisis has already claimed Greece, Ireland and Portugal, forcing them to seek bailouts from the European Union and International Monetary Fund.

© 2011 AFP

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