Italy, Europe Debt Crisis | featured news

Italian Prime Minister Mario Monti declared on Wednesday that reviving economic growth now had to take priority over belt tightening that could plunge the country deeper into recession.

Italian bond yields are expected to fall from recent record highs in an auction on Thursday in a sign the European Central Bank has managed to ease market pressure, at least for now, with its big injection of longer-term funds earlier this month.

Italy’s Senate voted overwhelmingly in favor of a package aimed at eliminating Italy’s budget deficit by 2013 and stimulating its economy as part of a broader plan to stabilize the euro.

Italy and Spain have not asked to be rescued by the International Monetary Fund, the head of the lender said on Monday as she urged European leaders to quickly solve the region's festering debt crisis.

Economist Mario Monti formed a new Italian government without a single politician Wednesday, drawing from the ranks of bankers, diplomats and business executives to make sure Italy escapes looming financial disaster....

Italy's premier-designate Mario Monti began talks Monday to create a new government tasked with overhauling an ailing economy.

Italian Premier Silvio Berlusconi resigned today after parliament's lower chamber passed European-demanded reforms, ending a 17-year political era and setting in motion a transition aimed at bringing the country back from the brink of economic crisis.

Italy's Senate approved economic reforms intended to reverse a collapse of market confidence on Friday, kicking off a rapid transition that will end the era of Silvio Berlusconi and clear the way for an emergency government within days.

U.S. stock futures are back up near Wednesday's opening price this morning as investors continue to focus firmly on Italy. Yesterday the Dow dropped almost 400 points as Italian bond yields surged past the 7% mark that is seen as the point of no return. At a time when the country has a lot of debt to refinance, borrowing costs are seen as unsustainable.

The shock waves of Europe's debt crisis will take a toll on corporate America, particularly sellers of cars, consumer products and basic materials that generate significant revenue on the continent.