(Bloomberg) -- The situation is already extremely dangerous for Italy and a crisis could erupt at any moment, according to new research from Bloomberg Economics, which shows how precarious the country’s huge debt load looks. BE’s calculations show that three-quarters of the recent jump in Italian bond yields reflects expectations for euro-zone interest-rate hikes. That will make it hard to argue that its borrowings are sustainable, the economists argue, creating an obstacle for the European Central Bank to activate its new crisis tool and suggesting that ultimately a political solution will be required.

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