New German-Italian pledge to protect euro

BERLIN -- The German and Italian leaders issued a new pledge to protect the eurozone, while the influential eurogroup chairman was quoted yesterday as saying there was no time to lose and officials will decide in the coming days what measures to take.

The weekend comments capped a string of assurances from European leaders that they will do everything they can to save the 17-nation euro. They came before markets open for a week in which close attention will be focused on Thursday's monthly meeting of the European Central Bank's policy-setting governing council.

German Chancellor Angela Merkel and Italian Premier Mario Monti "agreed that Germany and Italy will do everything to protect the eurozone" in a phone conversation Saturday, German government spokesman Georg Streiter said, a statement that was echoed by Monti's office.

Though they pledged no specific action, their comments raised expectations that the central bank might step in to buy Spanish and perhaps Italian government bonds to lower the nations' borrowing costs. -- AP