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Italy - Safe "For The Moment"

Some things always seem to start the same way.

Reuters:

Italy does not at the moment need to ask the euro zone's rescue funds to buy its government bonds in the markets to bring down borrowing costs, Bank of Italy Governor Ignazio Visco and Cabinet Undersecretary Antonio Catricala said on Sunday.

Chances that Rome will have to tap the European Financial Stability Facility (EFSF) or its successor the European Stability Mechanism (ESM) in future will depend largely on Italy's budget and reform efforts, Visco told Repubblica daily.

Visco, who sits on the European Central Bank's governing council, also said the economic situation in Italy and in the euro zone remains so difficult that a "looser monetary policy can be envisaged in the coming months".

Asked if Italy should ask for EFSF/ESM help Visco said: "For the moment it seems to me there is no need.

"Looking ahead, it will depend on several factors. If the markets convince themselves a turning point was passed, if Italy does not abandon fiscal discipline and steps up its efforts to promote growth, then there will be no need for a rescue fund intervention. Much depends on ourselves."

For the moment.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.