Ratings agency Moody’s downgraded some of Italy’s major banks on Monday of this week.
The government was forced to have a bond sale last week to “calm the markets”.
As if that wasn’t bad enough, Italy’s former prime minister Silvio Berlusconi is threatening to return to politics to “save” his old party.
Berlusconi was turfed out of Italian politics last November amid sex scandals, growing civil unrest and the impatience of Europe’s bosses.
The current prime minister, technocrat Mario Monti, has said he will stand down next year.