The debate over whether eurobonds could revive Europe raged on yesterday as Italian prime minister Mario Monti told TV viewers yesterday that Germany needs countries such as Italy to remain in the euro to keep its own economy propped up. But debt yields actually fell after weak economic data raised prospects of further intervention.

Speaking on an Italian TV show, Monti said that if Italy abandoned the euro and returned to a devalued lira, this would present a huge problem for Germany's exports. That was why Germany would support eurobonds, Monti said.