Crisis: Merkel urges Italy to avoid anti-spread shield
Italy taking right measures, German Chancellor to Monti
Angela Merkel and Mario Monti meet in Berlin
(ANSAmed) - ROME/BERLIN - - German Chancellor Angela Merkel said that she believed Italy can make it "even without resorting to the anti-spread shield" and urged Prime Minister Mario Monti to "make it through the crisis with its own (national) resources," said Italian government sources on Thursday. Monti met with Merkel Wednesday in Berlin to discuss the economic situation in the eurozone, reforms in Europe, the crisis in Greece and the so-called spread shield that would allow EU rescue funds to be used to support the bonds of countries facing soaring borrowing costs. "So long as it follows the path to reform it has already undertaken, Italy can make it on its own," Merkel said at a press conference following meetings Wednesday.
Italy's fiscal and economic reforms are sure to yield benefits for the country, German Chancellor Angela Merkel also said Wednesday. And that, she added, should lead to further reductions in Italy's "very high" borrowing costs.
The spread between the (German) Bund and (Italy's) BTP is very high, but the Italian government bond auction has given hope: the Italian government headed by Mario Monti is making a significant contribution, which means that the spread will fall," said Merkel at the press conference in Berlin with Monti. Their meeting came at the same time the Italian Treasury sold six-month bonds at their lowest rates since March. But, added Merkel, Italy must continue its efforts to improve the country's economic competitiveness.
Monti agreed progress is being made but said that's no excuse to stop now. "The efforts of improving economic policy must be persistent, you cannot stop with a semblance of a good result, but we must go forward with determination," said Monti. The same can be said at pan-European level, where more work is needed, he added. Progress has been against the sovereign debt crisis, "but you cannot stop there."
The spread between the (German) Bund and (Italy's) BTP is very high, but the Italian government bond auction has given hope: the Italian government headed by Mario Monti is making a significant contribution, which means that the spread will fall," said Merkel at the press conference in Berlin with Monti. Their meeting came at the same time the Italian Treasury sold six-month bonds at their lowest rates since March. But, added Merkel, Italy must continue its efforts to improve the country's economic competitiveness.
Monti agreed progress is being made but said that's no excuse to stop now. "The efforts of improving economic policy must be persistent, you cannot stop with a semblance of a good result, but we must go forward with determination," said Monti. The same can be said at pan-European level, where more work is needed, he added. Progress has been against the sovereign debt crisis, "but you cannot stop there."
Merkel also called for greater economic integration among European economies and decision-makers. "We are convinced that the path we have chosen is the right one," she said. "We are also convinced that we must improve the ability to cooperate within the euro zone over the next months," working with key agencies including the European Central Bank and the European Union.
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