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Appeal for calm in EU

EU LEADERS hope that there will be some calm returning to the volatile bond markets today amid uncertain political developments in Greece and Italy.

The new Greek government, headed by former European Central Bank vice-president Lucas Papademos, is due to be sworn into office today in Athens. Meanwhile, in Italy, former European Commissioner Mario Monti is emerging as favourite to replace Silvio Berlusconi. The EC slashed growth forecasts for next year and there are mounting fears that France could get dragged into the eurozone crisis.