Italy Bonds Hit Danger Zone

AP Photo

Italian Premier Silvio Berlusconi attends a voting session at the Lower Chamber, Tuesday, Nov. 8, 2011. Premier Silvio Berlusconi won a much-watched vote Tuesday, but the result laid bare his lack of support in Parliament as financial pressure from the eurozone debt crisis pummeled Italy.

Italian Prime Minister Silvio Berlusconi’s exit may not be enough: Italy’s borrowing costs surpassed 7 percent Wednesday, the highest level since the country adopted the euro in 1999. The 7 percent level is considered unsustainable, having been the mark at which Portugal, Greece, and Ireland were all forced to seek E.U. bailouts. An E.U. team will arrive in Rome Wednesday to begin monitoring Italy’s plans to deal with debt. Meanwhile on Wall Street, stocks tumbled on fears that Italy's bond spike would cause Europe's debt crisis to sprial even more.