HELSINKI (AP) — Italian Premier Mario Monti says the market for sovereign debt has failed to function properly and has led to unrealistically high borrowing rates for some countries.
Monti says European leaders should adopt measures to address the high borrowing costs, which countries like Italy and Spain are currently forced to pay. He did not specify what kind of measures.
The premier said Wednesday in Finland that markets were to blame for not appreciating the austerity measures Italy has undertaken to combat the perception that its fiscal policies are unsustainable.
Monti says Italy doesn't need a bailout because its public finances are in a "comfortable situation."
The yield on Italy's 10-year bonds rose well above 6 percent last week, but has retreated in recent days on expectations the European Central Bank will resume its bond-buying program.