Mario Draghi this week faces one of the dominant challenges for the euro-area economy in 2015, writes Catherine Bosley

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

Standard & Poor’s has affirmed the downgrading of 15 of Italy’s biggest banks, and has cut the ratings on 15 more.

Milan: Italian banks, including UniCredit SpA and Intesa Sanpaolo SpA, tumbled in Milan as the contagion from Europe’s debt crisis threatened to spread to the region’s third-biggest economy.

A MINIMUM of seven international financial services companies have expressed an interest in acquiring AIB’s 70% stake in Polish player, Bank Zachodni, according to reports emanating from Poland.