Italy is surrendering to the pressure and the new government is going out of its way to ensure that the nation avoids the dramatic fate of Greece, Portugal and Ireland as borrowing costs surge above 7.0%. Monti's new government rushed a day earlier in announcing a new 30 billion euros austerity and growth package to restore confidence and ease the evident strain on market.

The Italian Cabinet announced the measures on Sunday and Monti to support the market with the start of trading on Monday and is expected to present the plan to both houses of parliament today, the measures include 20 billion euros of austerity measures and another 10 billion aimed at supporting growth that trailed behind the European average in the past decade.

The package includes a delay in retirement age, resurrect a tax on first homes and enforce the crackdown on tax evasion. Monti will outline the measures today in two addresses to both houses of parliament and will present the plan to the Chamber of Deputies at 4 PM and to the Senate at 6 PM.