Janet Daley: It is now both necessary – and impossible - to save Italy
Well, the "resignation" of Silvio Berlusconi didn't help much, did it?.
Today, Italy's bond yields – which is to say, its cost of borrowing – have risen to 7 per cent. That is a record: the highest level since the euro was created in 1999. This is a definitively unsustainable situation: it is now both necessary – and impossible - for Italy to be bailed out. We have reached the end of the line in terms of feasible solutions.
However many democratically elected governments are dissolved and replaced by "technocrats" (EU receivers), there can be no way out of this that does not involve the bankruptcy of nation states, and ultimately (maybe sooner rather than later) the implosion of the single currency.