Germany and France 'hold talks on eurozone break-up'

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Germany and France have begun preliminary talks about a possible break-up of the eurozone, according to reports, amid fresh fears about the future of Italy after the nation's cost of borrowing hit a new record.

Although the disintegration of the single currency nations is still considered highly unlikely, the reports were last night deemed serious enough to prompt European Commission (EC) President Jose Manuel Barroso to issue a stark warning about the dangers of such a move. A collapse of investor confidence in the eurozone's third-biggest economy sent interest rates in Italy above the critical 7% mark on Wednesday - the highest it has been in the country since the launch of the euro in 1999 and the level that triggered bailouts in Portugal, Greece and Ireland. The European Central Bank (EC...

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