Italian Prime Minister Mario Monti has warned Europe that the region is facing the threat of a psychological disintegration and urged all leaders to become more independent from their parliaments.
In an interview with German magazine Der Spiegel, which was published on Sunday, he said the debt crisis risks the future of the single-currency bloc.
The tensions that have been accompanying Eurozone in recent years already hold the attributes of a psychological dissolution of Europe, Monti told the magazine.
Monti also warned that if the euro became a major factor in tearing Europe apart, the foundations of the European project would be destroyed.
The Italian Premier welcomed European Central Bank President Mario Draghi's statement last Thursday that the government bond market was severely distorted.
He urged Eurozone governments to maintain freedom of action and become less bound by the decisions of the Parliaments. Or else, the Eurozone is more likely to witness a break up than an integration, he told Spiegel.
Elsewhere, Bank of Italy Governor Ignazio Visco on Sunday said the country does not need European rescue funds "at the moment" to bring down its borrowing costs.
The need to tap European funds in the future will depend on Italy's reform efforts and the government's ability to convince markets that a turning point has passed, Visco told La Repubblica.
In July, European leaders renewed their support to euro, raising hopes of more EU action to ease the ongoing crisis.
During a telephone conversation last month, Monti and German Chancellor Angela Merkel agreed that both the countries "will do everything possible to protect the euro area," close on the heels of a similar agreement between Merkel and French President Francois Hollande.
Draghi had said the central bank is prepared to take "whatever it takes to preserve the euro" and act on rising bond yields.
Italy plans to reduce its public debt by 20 percent in five years, Finance Minister Vittorio Grilli said in July. The country's public debt currently equates 123 percent of GDP.
by RTT Staff Writer
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