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"Our banks are solid" - Berlusconi tells parliament

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"Our banks are solid" - Berlusconi tells parliament

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Silvio Berlusconi decided to address both houses of parliament today, in an attempt to calm fears that Italy could be dragged into a Greek-style financial crisis.

The Italian parliament approved a 43 billion euro austerity package last month – but Berlusconi said there will be more reforms.

He went on to insist that Italy’s banks and political system are rock solid.

The speech to parliament comes after heavy losses on the stock exchange in Milan and a sharp rise in yields on Italian bonds.

Yields on Italian and Spanish ten year bonds reached new highs, topping six percent.

Italy’s national debt is 120 percent of GDP. Any rise in the cost of borrowing will put economic stability at risk.