Greek bailout – and Papandreou's premiership – in jeopardy

"Today we saw a dramatic jump in the cost of borrowing for Italy," said Simon Tilford of CER. "The respite we had after last week's EU summit didn't last very long, and the current events in Greece are not just increasing the likelihood of a disorderly default there, they also contribute to contagion in Italy and Spain." As of now Italy is still solvent. But if it has to roll over its debt at such high costs, Mr. Tilford warns, it won’t be much longer, and then Europe has a real problem.