Reuters: Pressure mounts on ECB to bring down bond yields

04 September 2012

France and Italy piled more pressure on the European Central Bank to agree steps this week to reduce crippling borrowing costs for southern eurozone states.

Italian Prime Minister Mario Monti and French President François Hollande said after talks in Rome that European institutions must act to bring down the bond yields of countries that are unjustifiably penalised by markets.

Monti said he expected measures to remove "the serious obstacle of (bond) spreads that have no underlying economic justification" for Italy and other countries "doing our homework" on economic reform and deficit reduction. Hollande said high debt yields facing countries such as Spain and Italy were not justified and it was the role of EU institutions, including the ECB, to bring them down.

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