European markets tumble as investors fear Italian default
Investors in Europe have set their sights on Italy, speculating
that if a Greek bailout isn't approved and Athens defaults on
its government debt, Italy is next.    • close     In this April
26 file photo, Italian Premier Silvio Berlusconi waits for
French President Nicolas Sarkozy, prior to their meeting at
Rome's Villa Madama.     View Caption  European stocks fell
sharply Tuesday amid larger worries about European resolve on a
Greek bailout and speculation that Italy is edging toward
default.  Italy's cost of borrowing has soared this week and
yields on the government's benchmark 10-year bonds rose to a
euro-era record earlier today. Markets in London, Paris, Madrid,
and Milan fell sharply in morning trading.  Italian Finance
Minister Giulio Tremonti today chairs an emergency session to
cut $56 billion from the budget, an austerity measure designed
to reassure markets.  The session follows separate meetings on
Italy and Greece in Brussels yesterday