Italy in strife

Italy is likely to need an European Union rescue within six months as the country slides into deeper economic crisis and a credit crunch spreads to large companies. Mediobanca, Italy's second biggest bank, said its "index of solvency risk" for Italy was flashing warning signs.

Italy is likely to need an European Union rescue within six months as the country slides into deeper economic crisis and a credit crunch spreads to large companies. Mediobanca, Italy's second biggest bank, said its "index of solvency risk" for Italy was flashing warning signs.

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