Can the European Stability Mechanism bailout Italy? Well doubts are roaming in the financial circles that the crisis is too mega for the European body to handle.  The lack of confidence in the finance minister, banks, and growing yields has aroused nervousness in the European nation.

The Greek crisis is still looming around and now Italy the fourth largest economy in European Union is about to shred into an economic bandwagon that other European countries have to deal with. There is a sense of urgency to assist Italy but first the Prime Minister Silvio Berlusconi must demonstrate confidence in implementing the needed budget reforms. Italy is second to Greece in sovereign debt ratio relative to GDP and there may be insufficient funds to bail Italy out from EFSF.