Italy’s Prime Minister Silvio Berlusconi faces a key vote on public finances Tuesday
afternoon. Doubts about Italy's ability to service its debts have pushed its borrowing
costs to record highs as the euro-zone crisis spreads. The yield on Italian 10 year
bonds hit a fresh euro-era high on Monday amid ongoing political uncertainty – with
Berlusconi being forced Monday afternoon to deny reports of his imminent resignation. All
this is happening as euro-zone finance ministers meet in Brussels to discuss the euro-zone
debt crisis. Speaking to MPs in London, British Prime Minister David Cameron said
Germany should drop its opposition to the European Central Bank expanding its role
to ease the debt problems surrounding countries like Italy. Berlusconi's failure
to adopt reforms swiftly to defuse the debt crisis has fuelled dissent within his
party, though estimates vary widely over how many centre-right deputies will jump
ship in the key vote in the lower house due to take place mid-afternoon Rome time.
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