Europe

Home page

Europe

Monti says Italy may use EU rescue funds to solve debt problem

20 June 2012 19:35 (UTC +04:00)

Baku-APA. Italian Prime Minister Mario Monti said Italy may use EU rescue funds to settle their state debts, Ansa news agency said on Wednesday, APA reports quoting Xinhua.

"We are reflecting on how to reinforce the stability of the eurozone via mechanisms that make it possible to reward virtue so that countries respecting the financial rules, like Italy, can have this recognized in terms of less abnormal spread levels," Monti said at the end of the G20 summit in Mexico.

He added that the prospect of using the European Financial Stability Facility (EFSF) to buy state debt would be discussed at a meeting involving leaders of Italy, Germany, France and Spain due in Rome on June 22 ahead of the EU summit in Brussels on June 28-29.

The technocrat stressed that using rescue funds in this way should not be confused with the idea that Italy was seeking a bailout.

Italy has seen its borrowing costs rise in recent months despite austerity measures and structural economic reforms, due to fears of contagion from other countries embroiled in the eurozone debt crisis, said Ansa.

The eurozone debt crisis has forced Greece, Ireland and Portugal to seek international bailouts.

Following Spain’s request of up to 100 billion euros (127 billion U.S. dollars) to EU earlier this month to support its struggling banks, there has been wide speculation that Italy could also need international aid.