The Bank of Italy building is seen downtown Milan, November 25, 2011.
REUTERS/Stefano Rellandini/File Photo Acquire Licensing RightsSummary Italy's bond spread versus Germany's widest since JanuaryCentral bank calls for 'extreme' budget prudenceSays economy remained weak in Q3 after Q2 contractionSell-off plan seems like window dressing, audit court saysROME, Oct 9 (Reuters) - Italy's rising bond yields are a "wake-up call", the country's central bank said on Monday, urging the government to handle its budgetary policy with "extreme prudence".
"The high debt is a serious element of vulnerability," the Bank of Italy said in a testimony to parliament.
The Bank of Italy said weakness in economic activity continued in the third quarter of this year, after GDP shrank by 0.4% in the previous one.
Over the past decade, proceeds from privatisation programmes have averaged less than 0.1% of national output per year, the Bank of Italy said.
Persons:
Stefano Rellandini, Giorgia, Guido Carlino, Gareth Jones, Mark Potter
Organizations:
of, REUTERS, Bank of, Thomson
Locations:
of Italy, Milan, ROME, Bank of Italy, Ukraine, Israel, Rome, Greece's