Crisis or spread to Italy
 
In Spain to apply for bank bailout, the market is widespread concern that Italy may be the next country to apply for EU aid. 10-year bond yields in Italy on the 9th again exceeded 6 percent, on the 10th fell slightly to 6%. If a country's bond yields have been maintained at above 6%, it will be soon climbed to more than 7% of the cordon, the market is generally believed that 7% can not afford the debt service costs.
"Italy will never need to say (bailout funds) is risky." In the EU finance ministers meeting on the 10th, Monty said, "Italy may interest (application).
 
Monty said that Italy might be interested in the euro zone assistance funds to support the domestic bond market. According to the agreement reached by the end of June EU summit, the future European permanent relief fund - the European stability mechanism (ESM) can intervene in the secondary market bond prices to help some heavily indebted countries to reduce the cost of debt financing. Monti's statement shows that the European debt crisis could spread to Italy, the euro zone's third largest economy.
 
Italy to apply a comprehensive assistance, outside the euro zone rescue funds will be difficult to bear. But Monty insisted that Italy does not require comprehensive relief as Greece or Portugal.
 
International Monetary Fund (IM F) 10, also warned that Italy is still facing the impact of European debt crisis spread. IM F on the 10th, released a report that, in view of the debt crisis in Europe fermentation, the global economic slowdown and fiscal consolidation in many developed countries are taken, the Italian economy this year will be a recession, expected its real gross domestic product (GDP), 2012 will shrink by 1 .9%, will shrink 0.3 percent in 2013. IM F pointed out that Italy's economic recovery requires not only to their own countries, the labor market, structural reform of the tax field, is also inseparable from the whole European level to strengthen the initiatives of the monetary union.
 
European stability mechanism for short-term is difficult to take effect
Eurozone finance ministers to end the meeting on the 10th, the injection of the Memorandum of Understanding agreed on Spanish financial institutions, the Euro Group expects the plan will get final approval on July 20, so that the first phase of 30 billion euros end of this month before allocation of the Spanish banking sector to cope with the crisis.
The decision is designed to prevent Spain due to the banking crisis and to apply for a comprehensive rescue. Spain is the euro zone's fourth largest economy, once the application is fully rescue the European rescue fund will reach the limit, the debt crisis situation will be more difficult to control.
 
But the market for euro-zone finance ministers' meeting failed to make more progress was disappointed the euro against the U.S. dollar fell to two-year low. At the same time, the German High Court refused to expedite the ratification of the ESM is a new blow on the market. The German Federal Constitutional Court ended the evening of 10 E SM and the EU "financial contract" the constitutionality of the first hearing, said the final decision date may be in a few months later. E, SM current borrowing capacity of ? 500 billion, subject to account for the contribution of more than 90% of the share of countries have ratified. The German nodded these two critical response to the entry into force of the European debt crisis tool.
 
Some analysts pointed out, this means that the originally scheduled in July 1 effective date of the ESM will be delayed a few months to take effect. ESM is more than a few weeks yet to fulfill is a serious lag, the delay of a few months will undoubtedly make the outside world is questioned more bailouts successful place.
 
Schaeuble, Germany's finance minister urged the judge to step up the decision-making. He said: "European stability mechanism dragged the later more uncertainty to the market, outside the euro area within an appropriate time frame to make the necessary decision-making trust the weaker."



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