Italian Finance Minister Vittorio Grilli has expressed concerns about the impact that a Spanish bailout could have on Italy's public finances, Italian daily La Reppublica reports.

"Italy would bear the brunt of the cost. Our public debt has already risen by four percentage point due to loans made to Greece, Ireland and Portugal," Grilli said.

"If Spain were to obtain aid for no less than €100bn, the Italian share would be equivalent of another 1.5% of gross domestic product."

Grilli reiterated that Italy does not intend on requesting international aid, explaining that the country's finances were solid and that it will meet the goal of a balanced budget in 2013 without the need for aid.

Over the weekend, Reuters reported that Spain would request a bailout in November after a source said that measures were being prepared and that a plan would materialise by next month. Negotiations with Spain would take place alongside talks for a renewed loan programme for Greece and a bailout plan for Cyprus.

FOREIGN EXPOSURE TO ITALIAN DEBT RISES

Foreign investors boosted their exposure to Italian debt to €675bn in June compared to €669bn in May. However, exposure is still less than the €827bn seen a year earlier, before concerns over Italy's debt situation surged.

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