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Source: AFP

Eurozone debt crisis threatens stability: Italian minister

The eurozone's crippling debts and deficits are a threat to European stability, Italian Economy Minister Giulio Tremonti said.

The eurozone's crippling debts and deficits are a threat to European stability, Italian Economy Minister Giulio Tremonti said in an interview published on Monday.
 

A woman shops at a supermarket in the western German city of Duesseldorf in August.
(AFP/DDP/File/Lennart Preiss)

"Today, the risk of a new collapse faces not only the real economy but also the sovereign structure of debts and thus governments," Tremonti told the daily Il Corriere della Sera.

Describing the global financial crisis that began in late 2008 as "the collapse of paper pyramids (which) caused the collapse of the real economy," he said the new threats were "especially serious in Europe because, the economy apart, it is affecting the very process of Europe-building."

He said: "We are a continent, we have a market, we have a single currency, but we don't yet have a common government."

Tremonti, urging an overhaul of "our social and economic model," said Europe was producing "more debt than wealth, more deficit than GDP (gross domestic product)."

Several European countries have put forward often controversial plans for getting their public finances in order after the near insolvency of Greece and concern over the economic situations in Portugal and Spain, and some other EU countries, caused great strains on financial markets.

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