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Students rally in Italy over economic failure -

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There have been large protests by students in several cities across Italy, the next expected
flashpoint in the Eurozone debt crisis. Students have clashed with police in Milan as their new
Prime Minister, Mario Monti, unveiled his plans for fixing the economy.

TONY EASTLEY: There have been large protests by students in several cities across Italy, the next
expected flashpoint in the Eurozone debt crisis.

Students clashed with police in Milan, as their new prime minister, Mario Monti, unveiled his plans
for fixing the troubled economy.

While the EU's focus is still heavily on Italy there are concerns about Spain's borrowing costs -
edging towards unsustainable levels.

Here's Europe correspondent, Rachael Brown.

(Sound of protesters)

RACHAEL BROWN: Thousands of students have staged demonstrations across Italy, protesting against
their new technocratic government.

They fear Mario Monti's team will act in favour of fat cats and bankers.

(Sound of protesters)

The students have thrown flares at riot police in Milan and tried to reach Bocconi University,
which educates Italy's business elite, and is headed by Mr Monti, an economist.

The soft-spoken economist however, appears to have garnered the support of more than half of all
Italians, according to a poll by IPR marketing and the new prime minister was welcomed with rousing
applause overnight, for his first speech to parliament.

(Mario Monti speaking Italian)

"The government recognises it was formed to resolve a serious emergency," he says.

Mr Monti says the future of the euro depends on what Italy does in the next few weeks.

His ambitious emergency plan includes an overhaul of the pension system, a crackdown on tax evasion
and incentives for companies to hire more women and young people.

He says Italy must stop being considered Europe's weak link and he's dismissed suggestions Italy is
being dictated to.

(Mario Monti speaking Italian)

"We don't see European constraints as being imposed on us," he says, "more than anything, let me
tell you this; there is no 'them' and 'us'. We are Europe."

With Italy's borrowing costs now at unsustainable levels, Mr Monti has a big job ahead to calm
financial markets.

This week the country's borrowing rates twice crossed the danger level of 7 per cent, the rate at
which Greece, Ireland and Portugal were forced to seek emergency bailouts.

Meanwhile, the yield on Spain's 10 year bonds have skyrocketed to a euro-era record of 6.75 per
cent.

French borrowing costs have also shot up, as the difference in interest rates between its bonds and
those of Germany hit a record.

This is Rachael Brown in London, reporting for AM.