Italy: the ordeal is nearly contained - by Neil Unmack

Rome is half out of the woods. Italy’s 10-year bond yields have fallen by over a percentage point since European Central Bank Chief Mario Draghi hinted at a new bond-buying programme. With yields falling and confidence returning, the need for a bailout is waning.

If a bailout can be avoided, it should; nobody wants to see the euro zone’s third-largest economy on life support. And at current yields, Italy’s debt looks almost sustainable: Rome would need nominal growth of 2.4 percent of GDP – which would be below its long-term average – and a primary surplus of 3 percent of GDP, which the International Monetary Fund expects this year.

However, Italy needs to convince investors it can grow its way out of debt, forecast by the IMF to hit 125 percent of GDP this year. And there is a long way to go to make the economy competitive again.

Read more: Analysis & Opinion | Reuters

Irish to ratify EU deficit-fighting treaty, 60 per cent vote 'yes'

Referendum officials compiling unofficial results say Ireland's voters have decided to ratify the European Union's deficit-fighting treaty with "yes" votes reaching nearly 60 per cent.

The victory, to be declared officially later Friday, relieves some pressure on EU financial chiefs as they battle to contain the eurozone's debt crisis.

Dozens of party activists monitoring the ballot count reported the "yes" side solidly outpolling "no" voters several hours ahead of the official result announcement at Dublin Castle.

About half of Ireland's 3.13 million registered voters participated in Thursday's referendum.

Ireland was the only country among 25 signatories requiring public approval.

Read more: Irish to ratify EU deficit-fighting treaty, 60 per cent vote 'yes' | CanadianBusiness.com