Italy's prime minister, Mario Monti, who has emerged as a key figure in discussion on the euro zone, was spending Wednesday in Finland, after talks Tuesday in Paris with the French president, François Hollande, and ahead of a meeting Thursday in Madrid with Spain’s prime minister, Mariano Rajoy. In the middle of this hectic round of shuttle diplomacy, Mr. Monti held talks by phone with President Barack Obama on Tuesday night. Borrowing costs for Spain and Italy were hitting unsustainable levels until Mario Draghi, president of the European Central Bank, promised last week to do “whatever it takes” to savethe euro. The emerging plan appears to be one under which the euro zone’s rescue funds would buy Spanish and Italian bonds in the primary market, while the E.C.B. would intervene in the secondary market. “We’re thinking of a possible intervention in various combinations” Mr. Monti told the Finnish newspaper Helsingin Sanomat, suggesting that this could involve the euro zone’s temporary or permanent rescue funds and the central bank, Bloomberg News reported.... Continue to read.
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