THE COST OF Italian borrowing has hit a new high this morning amid concerns about the economic and political stability of the third largest economy in the eurozone.

The yield on a 10-year Italian bond stands at 6.56 per cent this morning, a euro-era high that will concern investors worldwide with any rise above 6 per cent considered perilous.

BBC’s Robert Peston points out that Italy’s borrowing rates are dangerously close to the rates which forced Greece, Ireland and Portugal to seek a bailout from the EU and IMF.

It is widely feared that Italy could be the next country to seek international assistance with prime minister Silvio Berlusconi facing a crucial vote on public finance reforms in the Italian parliament tomorrow.

Meanwhile, on the stock market shares have fallen in early trading.

In London the FTSE 100 is down over 1 per cent as is the CAC 40 in Paris, and the DAX in Germany.

Eurozone finance ministers are meeting in Brussels today in a bid to flesh out the details of a package of reforms which are hoped can bolster the eurozone’s ability to withstand further turmoil.

While in debt-stricken Greece, it is expected that there will be a new unity government and prime minister by the end of the day.

Read: Greece agrees unity government with new PM to be chosen today >

Read: Noonan in Brussels for eurozone summit >