Italy government borrowing rates hit high

The borrowing cost has risen for the Italian government as fears grow over political uncertainty in Rome.



It is feared that Italy, the eurozone's third biggest economy, could become the next victim of the debt crisis.



Prime Minister Silvio Berlusconi faces a crunch vote on public finance tomorrow.



Meanwhile, concerns over Italy are also overshadowing developments in Greece, where Prime Minister George Papandreou has agreed to step down.



Papandreou sealed a deal with the opposition to form a new coalition government to approve an EU-IMF bailout package.



Once the vote has been passed, it will open the way for Greece to receive the next 8 billion euro tranche of bailout loans.