Alan Blinkhorn - Urgent News:
BBC.co.uk: 9 November 2011 Last updated at 16:19
Italy borrowing costs hit record 7%
Italy's cost of borrowing has touched a new record, a day after Prime Minister Silvio Berlusconi said he would resign once budget reforms were passed.
If Italy tried to borrow money today, payable in 10 years, it would have to pay an interest rate of more than 7%.
Investors fear that Italy could become the next victim of the debt crisis.
In a bid to calm markets, President Giorgio Napolitano said reforms would be passed and Mr Berlusconi would resign "within a few days".
The 7% level is widely viewed as unsustainable and was the point at which Portugal, Greece and the Irish Republic were forced to seek a bailout.
This so-called yield on Italian government debt is the highest since the euro was founded in 1999. In comparison, Germany's implied cost of borrowing for 10 years is 1.73%.
Read more at: www.bbc.co.uk
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