Italy will not need bailout if it continues austerity, says Wolfang Schaeuble Investor concerns, however, have increased steadily in recent weeks, with Spain's request for EU help to rescue its stricken banking system sparking fresh turmoil in the markets. On Tuesday, Mr Monti, a former EU commissioner, said the country "will not need a bailout even in the future" and called on the markets and financial observers "not to be governed by cliches or prejudices." "I understand that Italy could have been associated with the idea of an undisciplined country in the past [but]... now it is more disciplined than many other European countries," Mr Monti told German radio ARD. Skittish investors fearing a knock-on effect from Spain to Italy caused markets to plunge this week and all eyes will be on a bond sale later Wednesday as an indicator of just how much investor confidence may have been affected. While Italy's banks are not exposed to the real estate crisis which has rocked Spain and its public deficit is lower, there are fears the recession-hit country's total debt mountain of 1.9 trillion euros may make it the next eurozone domino to fall.