IF ITALIAN tax returns are to be believed, the average shoe salesman in the prosperous northern city of Bolzano earns €673 per year, while jewellers around the country earn less than primary school teachers.

Luxembourg Prime Minister Jean-Claude Juncker, who is also the country’s finance minister, sounded unworried yesterday about the strength of the euro - which traded at $1.2820 yesterday – but said if it rises much higher “we could enter dangerous waters”.

The resignation of Italy’s embattled central bank chief has cleared the way for the government to focus on reforming the nation’s scandal-tainted banking industry at a special cabinet meeting today.