The Italian Prime Minister Mario Monti has urged a response against the debt crisis that has pushed the Europe market to the brink this year after Italy’s auction week. The auction was to stimulate the market and the treasury was able to raise 7.0 billion euros. Although it was below the 8.5 bullion euros the long-term rates holding was 7 per cent which has caused quit a stir around the world. Monti believes that the problem is within Italy economy, that the market is suffering because European markets are not united. He believes that with discipline and a strong European economic policy it will boost growth in the economy. His plans for the new year is to start implementing liberal reforms to make Italy’s economy more competitive and would look at economic policies of Nordic countries for some pointers.
The euro has hit its lowest level against the American dollar and a ten year low against the Chinese yen. What can be done is bailouts and bonds but analysts says that they are cautious with the implications of bond sale.