The austerity and reform measures, aimed at boosting the economy and controlling a huge public debt, followed demands by European partners for urgent action to restore market confidence in Italy's strained public finances. The prospect of a transitional government headed by respected non-partisan economist Mario Monti calmed markets for a second day, with Italy's 10-year borrowing rate down a further 0.21 percentage point to 6.59pc. Shares were buoyant too, with the FTSE MIB up 1.7pc in early trading at 15,477. Markets have been roiled all week over Italy's political uncertainty and fears that the country was heading ... (full story)