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Italian leader Monti and Germany's Merkel in Brussels on Thursday (Photo: consilium.europa.eu)

Italy and Spain hold EU growth pact hostage

Spain and Italy were late on Thursday (28 June) refusing to sign up to a eurozone growth compact unless they got a deal on short-term measures to help their troubled economies.

Both countries followed through on tough rhetoric ahead of the summit in Brussels - that they need immediate help to bring down their borrowing costs.

Italian leader Mario Monti had been particularly combative, indicating he cannot return to Italy - where he has pushed through harsh reforms - without some ...

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