Spanish and Italian politicians scrambled on Tuesday to find a fresh response to the debt crisis engulfing the two countries as their borrowing costs hit new euro-era highs.
José Luis Rodríguez Zapatero, Spain’s Socialist prime minister, delayed a planned summer holiday amid growing fears Madrid could become the latest European government to require a bail-out.
In Rome, finance minister Giulio Tremonti and regulators convened an emergency session of Italy’s Financial Stability Committee. While the committee expressed confidence in the Italian banking system, Mr Tremonti is due to meet Jean-Claude Juncker, head of the group of eurozone finance ministers, in Luxembourg today to discuss the burgeoning crisis.
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