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Global Markets Plummet On Italy Fears

Investment bankers follow market indicators in Moscow. (file photo)
Shares on financial markets are falling around the globe amid fears Italy may become the next eurozone country in need of a bailout.

On November 9, borrowing rates for Italian 10-year government bonds rose above 7 percent, a threshold seen as unsustainable by economists.

Greece, Portugal, and Ireland all had to seek rescue funds from their eurozone partners soon after their borrowing rates topped 7 percent.

European lenders, however, may not have enough resources to bailout Italy, the eurozone's third-largest economy.

Italian President Giorgio Napolitano, in an effort to calm down markets, announced on November 9 that Prime Minister Silvio Berlusconi will be stepping down soon.

Berlusconi has been seen as unable to carry out economic reforms to prevent the country slipping further into debt.

Berlusconi has pledged to step down after parliament approves the budget reforms.

Both houses of parliament are now expected to pass the measures by November 13.

compiled from agency reports