Annotated Bibliography 5

MLA:

Totaro , Lorenzo . "Monti Prescribes ‘Aspirin’ for New Year’s Debt Ache: Euro Credit - Bloomberg." Bloomberg - Business & Financial News, Breaking News Headlines. N.p., n.d. Web. 18 Jan. 2012. <http://www.bloomberg.com/news/2012-01-03/monti-prescribes-italian-aspirin-for-new-year-s-debt-ache-euro-credit.html>.

In this article, Lorenzo describes Italy’s current financial state due to Berlusconi’s actions and the measures that Monti plans on taking in order to revive Italy’s economy. Monti must “tackle almost half a trillion euros in debt sales after the worst year on record for Italian bonds.” He enacted $39 billion in austerity and growth measures which were aimed at tackling Italy’s borrowing costs. Italy is Europe’s second largest debtor after Greece and its fate could seal the fate of the survival of the Euro as well. Italy must repay 130 billion euros in debt in the first quarter, and its 10-year bond yield is already at the dangerous 7% level. Italy had already sold almost 20 billion euros of debt at the end of December and the borrowing costs declined by almost half after the sale of 9 billion euros of 6-month bills. Monti plans that Italy will be able to raise almost 450 billion euros in debt in 2012 and is “scheduled to easily reach a balanced budget in 2013, so its becomes more of an issue with the long end, and the long end is priced off of those structural reforms.” Tataro seems like a good source, and this article does not seem biased. In fact, it gives many perspectives to the Italian and European debt crisis and includes numerous outside quotes from other sources. This article is helpful because it gives Monti’s future plans to save the Italian economy after Berlusconi’s actions.