World Bulletin / News Desk
Italy should leave the euro unless the European Central Bank agrees to pump more cash into the economy and guarantee government debts, former Prime Minister Silvio Berlusconi said on Friday.
"We have to go to Europe and say forcefully that the ECB should start printing money," Berlusconi said in an entry on his Facebook page.
"Otherwise, if it doesn't, we should have the strength to say 'ciao, ciao' and leave the euro, while remaining in the EU, or to say to Germany that it should leave the euro if it doesn't agree," he said.
Berlusconi, still facing trial on charges of paying for sex with an underaged prostitute, has had little involvement in day-to-day political life since resigning last year after Italy came close to a Greek-style debt crisis.
"My 'crazy idea' is that the Bank of Italy should print euros or print our own currency," he said.
His comments come as Italy's fractious political parties begin manoeuvering ahead of elections in 2013 with his own centre-right People of Freedom (PDL) party in disarray after heavy losses in local polls last month.
The May local elections underscored growing rejection of the mainstream parties with big gains for the Five Star Movement led by Beppe Grillo, a rough-tongued comic who calls politicians "diarrhoea" and also wants to see Italy pull out of the euro.
The latest opinion poll by the Ipsos polling institute this week showed the PDL trailing both the centre-left Democratic Party (PD) and the Five Star movement with just 16.8 percent support.
But he has given indications recently that he is preparing to take a more active role as next year's elections approach, proposing last month to change Italy's government system into a French-style elected Presidency.
"I don't remember a more difficult moment than this in my life. People have really lost confidence," he said on Facebook. "What move can change the recessionary spiral?"
With support for the technocrat government of Prime Minister Mario Monti falling as the austerity measures imposed to combat the crisis begin to bite deeply, support for the euro has also begun to weaken.
A poll this week by the Washington-based Pew research centre showed 44 percent of Italians thought the euro had been damaging for Italy.
Berlusconi has a record of making provocative suggestions which are subsequently quietly dropped but his comments on the euro correspond with an increasingly critical tone against the euro by other parties.
His comments on the euro were immediately welcomed by his estranged former allies in the Northern League, who oppose the Monti government and have long been sceptical of the single currency.
"As the crisis worsens it is right to prepare for the collapse of the system, which would take our country out of the euro," the League's deputy parliamentary head Maurizio Fugatti said in a statement.
Volatility eased as traders focused on the world economy and corporate earnings after a week dominated by the dramatic spike in tensions over North Korea, which triggered a global sell-off before prices bounced back Monday.
Investors greeted the more conciliatory tone after US stocks dropped three days in a row last week on President Donald Trump's vow of "fire and fury" if North Korea continued to pursue its nuclear weapons and ballistic missile programs.
The ultra-conservative kingdom has moved to diversify its traditionally oil-dependent economy following a sharp fall in crude prices.
In its monthly report on the global oil market, the International Energy Agency said, however, that it believes the supply glut is easing, partly because demand is growing faster.
US stocks have been in retreat since President Donald Trump Tuesday issued a fiery warning to North Korea to halt its nuclear program.
The move by one of Japan's best-known firms greatly reduces the chance of an embarrassing delisting from the Tokyo Stock Exchange (TSE).
London's benchmark FTSE 100 index weakened by 0.5 percent to 7,503.39 points.
The approval by the European Commission comes just over two months after the European Central Bank -- which took on the role of the eurozone's banking supervisor in 2014 -- allowed the sale to go ahead for a symbolic fee of one euro.
BP, Chevron, ExxonMobil, Shell and Total have all published results in recent days, showing they pocketed $23 billion in net profit in the first half fo the year.
Higher cereal, sugar and dairy prices pushed food price index by 10.2 percent annually in July
HSBC was also a big riser, gaining three percent at £7.65 ($10, 8.5 euros) in late morning trade after the British banking giant announced a share buyback plan alongside a rise in first-half profits.
Both main crude contracts made strong gains, with WTI testing $50 a barrel for the first time since late May and Brent heading towards $53, while mining giants BHP Billiton and Rio Tinto saw their share price rise as commodities strengthened.