Political hurdles to resolving euro debt crisis intensify

ITALY braced for a confidence vote in Silvio Berlusconi’s government and Slovak leaders scrambled to secure approval for a stronger euro zone rescue fund yesterday, highlighting the political hurdles to resolving the bloc’s debt crisis.

The European Union’s top economic official said in Dublin the currency bloc was in a “very dangerous situation” and pressed governments to take strong action at an EU summit, pushed back to October 23 to give politicians time to come up with a new strategy for Greece and ailing banks.

Inspectors from Europe and the IMF gave a green light on Tuesday for Greece to receive a new aid payment needed to avert default, but new data showed the budget deficit widening and Greek tax inspectors vowed to strike next week over wage and pension cuts.