Investment sell-off sparks rise in Italy and Spain borrowing rates

Italy’s borrowing rates hit a new euro-era high today as a global market sell-off reignited fears that the debt crisis will engulf the eurozone’s third-largest economy.

Premier Silvio Berlusconi is to address parliament on the state of the economy, but opposition parties called for him to step down, saying his lack of economic credibility in the markets was part of the problem.