Italian puppet Prime Minister Mario Monti said that he will not leave the EU summit negotiating table on June 29 until he gets what he wants. And he has "threatened" to veto the Tobin Tax if he does not get what he wants. Angela Merkel is already shaking. Monti wants someone (EFSF, ECB) to start buying Italian bonds, in order to bring down yields.
According to Il Sole 24 Ore today, with Italy's 10-year bonds above 5.4% the situation is already unsustainable (those bonds were auctioned at 6.3% June 28), as Italy shall pay between EU10 and EU20 billion in additional debt service this year and next. If rates increase 1% more, Italy will be forced to apply for EU aid, Il Sole says.
The Italian industrialists association Confindustria has issued its forecast for GDP this year, which they say will drop by 2.4%. The director of Confindustria's think tank, Luca Paolazzi, said "we are not in a war, but the damages done by the crisis are similar to war damages."
Following Monti's furious attacks this week on German resistance to hyperinflation, World Bank President Robert Zoellick added his own. In a Washington Post interview Zoellick charged that "Germany has been too cautious about putting its wealth behind the Eurozone"; and the Post said Zoellick "warned that Berlin's resistance is raising the risk that the region's financial problems will escalate into a wider crisis." Zoellick is quoted, "The Germans need to show they would be willing to provide assurances that Spain and Italy can fund themselves...."
British puppet President Obama, according to several press reports today, has had phone discussions of the European Council summit with Monti, French President Francois Hollande, and Spanish Prime Minister Mariano Rajoy in recent days — but has not talked to Merkel since the G-20 summit 10 days ago.