New leaders face daunting task
- 13 years ago
The new technocratic leaders of Italy and Greece - Mario Monti and Lucas Papademos have a tough few months ahead.
Both have been charged with getting their countries in order - and implementing difficult austerity measures before elections.
As Italian bond yields again inched closer to the dangerous 7 per cent level, Monti scrambled to form a government, meeting with leaders of Italy's two biggest parties to discuss the "sacrifices" needed to restore market confidence.
Democratic Party leader Pier Luigi Bersani said talks had gone well, so far.
(SOUNDBITE) (Italian) DEMOCRATIC PARTY LEADER PIER LUIGI BERSANI SAYING:
"We have encouraged Mr. Monti to proceed, to continue with determination and speed. We did not set any terms for the government in the discussions and for us the meeting this morning was very encouraging."
In Greece, Lucas Papademos is preparing to push new reforms through parliament.
The European Commission is now insisting the country puts its commitment to austerity in writing.
Some Greek MPs favour growth measures over austerity - but Papademos is expected to get the support he needs.
(SOUNDBITE)(Greek) GREEK PRIME MINISTER, LUCAS PAPADEMOS, SAYING:
"I believe that none of us in this chamber wants this country to be defeated and to leave the euro. For those that support the government I believe it is obvious that they have the responsibility not to put the country in danger of leaving the eurozone. The country can be saved, it's in our hands."
As both countries try to get their houses in order - fears about the health of the French economy emerged once again.
European shares and the euro fell after a sharp rise in French yields to near record highs.
A new report also ranked France 15th out of 17 for its progress on economic adjustments.
That's fuelling concerns Europe's second largest economy could go down the same path as Greece and Italy, if changes aren't made soon.
Kirsty Basset, Reuters.
Both have been charged with getting their countries in order - and implementing difficult austerity measures before elections.
As Italian bond yields again inched closer to the dangerous 7 per cent level, Monti scrambled to form a government, meeting with leaders of Italy's two biggest parties to discuss the "sacrifices" needed to restore market confidence.
Democratic Party leader Pier Luigi Bersani said talks had gone well, so far.
(SOUNDBITE) (Italian) DEMOCRATIC PARTY LEADER PIER LUIGI BERSANI SAYING:
"We have encouraged Mr. Monti to proceed, to continue with determination and speed. We did not set any terms for the government in the discussions and for us the meeting this morning was very encouraging."
In Greece, Lucas Papademos is preparing to push new reforms through parliament.
The European Commission is now insisting the country puts its commitment to austerity in writing.
Some Greek MPs favour growth measures over austerity - but Papademos is expected to get the support he needs.
(SOUNDBITE)(Greek) GREEK PRIME MINISTER, LUCAS PAPADEMOS, SAYING:
"I believe that none of us in this chamber wants this country to be defeated and to leave the euro. For those that support the government I believe it is obvious that they have the responsibility not to put the country in danger of leaving the eurozone. The country can be saved, it's in our hands."
As both countries try to get their houses in order - fears about the health of the French economy emerged once again.
European shares and the euro fell after a sharp rise in French yields to near record highs.
A new report also ranked France 15th out of 17 for its progress on economic adjustments.
That's fuelling concerns Europe's second largest economy could go down the same path as Greece and Italy, if changes aren't made soon.
Kirsty Basset, Reuters.