Angela Merkel could be worried about Italy's new direction

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Italy, one of the world’s largest economies, already has a huge 132 percent debt to GDP ratio - second only to Greece on 180 percent.

Any moves to up its spending could lead to a downgrade by credit agencies, potentially triggering a financial crisis in the country and spreading around the EU.

Today, German Chancellor Angela Merkel appeared to rule out debt relief for Italy.

Speaking to the Frankfurter Allgemeine Sonntagszeitung, she claimed the principle of solidarity among members of the eurozone should not turn the single currency bloc into a debt-sharing union.