Under attack Berlusconi pledges reform

ITALIAN Prime Minister Silvio Berlusconi repeated promises of economic reform as Italian bonds came under renewed attack in the eurozone crisis and the centre-left opposition asked the president to name a new government.

With markets reeling from an unexpected decision by Greek Prime Minister George Papandreou to hold a referendum over austerity measures demanded by the European Union, Italian bonds were hit by a new wave of selling.

Yields on Italy’s 10-year BTP bonds rose to 6.3%, an unsustainable level just short of the point they reached in August when the ECB propped up the market by buying Italian debt.