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Monti to meet Hollande, Draghi boosts markets
Italian Prime Minister Mario Monti is to meet François Hollande on Tuesday as the French president pushes for a speedy implementation of the EU bailout boost agreed in June. Asian markets rallied Friday after European Central Bank governor Mario Draghi pledged to do what it takes to save the euro.
Hollande and Monti will have a working lunch in Paris on Tuesday, the Italian government
announced on Friday as the European economic crisis rumbles on.
On Wednesday Hollande called for the “rapid and firm implementation” of pro-growth measures for which he won European leaders’ support shortly after his election in June.
Monti will travel to Finland for a two-day visit after meeting Hollande, the Italian government’s website says.
Markets in Asia rallied Friday, following gains in New York, after Draghi told a London business conference on Thursday, that the "ECB is ready to do whatever it takes to preserve the euro. And believe me it will be enough.”
French Finance Minister Pierre Moscovici declared the statement "utterly positive".
Paris’s Cac-40 leapt 4.07 per cent and other European markets rose amid hope that the statement meant that the bank would buy more bonds to push yields lower in Spain.
The rise in Spain’s and Italy’s borrowing costs was halted Friday, with Spain’s 10-year bonds falling to 6.99 per cent and Italy borrowing 8.5 billion euros at 2.454 per cent, compared to 2.957 per cent during the last similar operation on 27 June.
Spain still had some grim statistics to announce.
Unemployment rose to 24.63 per cent in the second quarter of 2012 with youth joblessness at 53 per cent. The number of people officially out of work is now nearly 5.7 million.