The cost of borrowing money in Italy's government has risen considerably today as the stock market has fallen.
The same thing has happened to Spain and this indicates how one crisis so quickly spreads to another.
One of the flaws in the structure of the Euro is that you have national democracies where the will of the people is supposed to decide policy and yet when you are tied to other countries by a single currency you cannot just go your own way.
If a country threatens to go its own way it could potentially do serious damage to all of those around you.
That's why we are hearing political voices all over Europe saying to the Italian people they cannot have their own policies if you are going to stay in the Euro.
A senior aide to Chancellor Merkel today warned that the Eurozone crisis may come back after we thought we left the crisis a long time ago.
Italy's centre-left political leader, Pier Luigi Bersani has appealed to the country's parliament to resolve the political deadlock which has left the Italian people without a ruling party.
Bersani's party defeated former Italian Prime Minister and centre-right leader Silvio Berlusconi to gain the most seats in the election at the weekend, but failed to gain the Senate - which is necessary to legislate.
The Democratic Party (PD) proposes basic austerity reforms in government and could now try to form a "grand coalition" with Berlusconi or Beppe Grillo - who stunned the country by securing a quarter of the vote on Monday.
Talks between the main parties continued today and are set to resume on Wednesday.
The former TV comic whose anti-establishment "non-party" won more votes than any other single party in Italy's deadlocked election has showed no early signs of wanting to negotiate for power.
Beppe Grillo's 5-Star Movement collected almost 8.7 million votes overall, a tally which only trailed the multi-group blocs of the centre-left and centre-right.
Commentators said all his adversaries underestimated the appeal of a grassroots movement that found particular favour with young jobless Italians and others weary with Prime Minister Mario Monti's internationally-endorsed austerity agenda.
Mr Grillo, who mixes fierce attacks on corruption with policies that range from clean energy to free internet, surged in the final weeks of the campaign as hundreds of thousands turned up at his outspoken rallies.