EU pressure on Italian powder keg is a risky game

An Italian flag hangs from the side of the Colosseum

An Italian flag hangs from the side of the Colosseum

Source: Max Rossi/Reuters

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The euro zone and the ECB are playing with fire in Italy. They hope rising yields will force Rome to act. But a meltdown of the world’s third-largest bond market could have damaging consequences. Serious contagion is being averted for now, but the game needs a speedy end.

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