The eurozone’s handling of Cyprus’s bailout puts extra pressure on its downgrade- threatened sovereign ratings and shows policymakers overestimate their ability to contain the crisis, credit agency Moody’s said.

Italy’s cost of borrowing surged yesterday as investors dumped the country’s bonds in the wake of the general election.

ANTI-Lisbon treaty group Libertas yesterday claimed Fine Gael and Labour “simply could not be trusted” to defend Ireland’s business tax regime which has proved so beneficial to the economy.