Hungarian Foreign Minister: Price Of Italian Default Is ‘Too High’
fxbom.com
05:45 PM
SINGAPORE -(Dow Jones)- Hungarian Foreign Minister Janos Martonyi Wednesday said that the cost of an Italian default would be too high and that the country can’t be allowed to get into real trouble.
“Italy will never be lost; the price of that is too high,” Martonyi said in a speech during an official visit to Singapore.
“No one can afford Italy getting into real trouble.”
He said that Italy has a sound economy and that he had no doubt that the country would adopt new budget package that will see it having a balanced budget by 2013.
Martonyi’s comments come a day after Italian Prime Minister Silvio Berlusconi agreed to step down after he failed to muster a majority in a key vote in the lower house of parliament, setting in motion the possible formation of a national unity government charged with steering Italy out of the euro-zone debt crisis.
Investors have been losing confidence in Berlusconi’s government in recent weeks, sending Italy’s bond yields to euro-era highs.
Hungary, which is not part of the euro zone, hopes to be a member in a couple of years, Martonyi said.
-By Chun Han Wong, Dow Jones Newswires; +65 64154 160 ; chunhan.wong@dowjones.com
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