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Italy PM in Paris for debt meeting

Italy's Prime Minister Mario Monti travelled to Paris today for meetings with French leaders, including President Nicolas Sarkozy, on the eurozone debt crisis.

It comes as the euro fell to $1.2765 in Asia overnight -- its lowest point since September 2010.

A summit of all 27 EU leaders is scheduled to take place later this month.

Mr Monti also intends to hold discussions with German Chancellor Angela Merkel and British Prime Minister David Cameron in advance of the meeting.

Mr Monti said Europe had no need to fear his country anymore due to the tough austerity measures being implemented by his technocrat government.

But the interest rate being charged by investors to buy Italian 10-year government bonds stood at more than 7pc yesterday -- a level deemed by most economists to be unsustainable.

It is expected that Mr Monti will be lobbying President Sarkozy for the EU's bail-out fund to be increased in size, so that it could reassure investors in the short-term.

Italy and Spain are coming under intense pressure on the bond markets, piling the pressure on all EU leaders as they prepare for their emergency summit later this month.