It's been one of the toughest weeks yet for the European Union, as markets deem Italy increasingly unfit to weather the current economic storm.Interest on Italy's debt has hit 7.8 percent - unimaginable just a few months ago, and above the level that triggered meltdowns in other Eurozone nations. The shockwave saw ratings agencies downgrade Hungary and Portugal's debt to junk status, and warn there's more to come. A number of Italian banks were also dealt a ratings blow, as EU leaders pledged more cuts to combat the crisis. But in the Eurocrat capital of Brussels, leading by example doesn't seem to be taking hold, as Tessa Arcilla reports. Source