Eurozone consumer prices fell less than economists forecast last month, offering some relief to the ECB as it prepares to put its unprecedented bond-buying program into action.

ITALY’S centre-right government promised yesterday to hike VAT, as it bowed to market pressure for more action on its swollen debt and ignored mass street protests against its austerity measures.

ITALIAN Prime Minister Silvio Berlusconi, facing record bond yields and calls for his resignation, said Italy is “up to the task” of tackling the debt crisis as its economic fundamentals are solid.