(Reuters) - Italy risks being pulled back to the heart of the euro zone debt crisis as the fallout from a Spanish bank bailout makes market access more expensive even though Italian economic fundamentals are seen as stronger than Spain's.

The recent earthquakes which rocked Italy had a devastating effect as a 5.1 magnitude hit northern Italy earlier this month followed by two other quakes the last of which was centered on the town of Novi do Modena in Emilia Romagna a region where the two previous quakes killed more than 20 persons and rendered 14000 homeless. Several buildings were destroyed and many towns were damaged.

ROME—Leave it to Italians to come up with just the thing to survive the dog days of summer: canine gelato.This Italian ice cream for dogs contains no milk, eggs or sugar, which are harmful to canines. With temperatures in Rome topping 36 degrees Celsius (97 degrees Fahrenheit) this week, dogs are lapping up the icy treat at a pet supply store on the outskirts of the capital.

Italy’s strongest earthquakes in three years and more than 1,800 aftershocks are deterring tourists in the peak summer season, compounding a slowdown in the industry as Europe’s economy stagnates.

ROME — Before Italians turned to Mario Monti late last year to rescue them, the country’s debt crisis had sent its borrowing costs skyrocketing and the government’s credibility tumbling.Anxiety eased for a time once Monti took the helm as prime minister, and so did the financial pressures on Italy, the euro zone’s third-largest economy.

WARSAW, Poland - UEFA fined Croatia’s football association (euro) 80,000 ($101,000) on Tuesday after fans racially abused Italy forward Mario Balotelli at a European Championship match. The charges related to “the setting-off and throwing of fireworks, and the improper conduct of supporters (racist chants, racist symbols),” UEFA said in a statement.

 

Italy is in a severe recession, deepened by austerity measures passed by Mario Monti's technocrat government to try to keep Italy in the euro zone. Support for one party opposed to the currency has mushroomed to more than 20 percent.

POZNAN, POLAND — Amid high temperatures and even higher drama, Spain and Italy confirmed themselves as the two qualifiers from Group C at the European Championship. Until Jesús Navas scored the late winner, Spain had a tough time breaking down a Croatian side that went to Gdansk intent on preventing its opponents from playing their usual game. It ended Monday night on that solitary goal, 1-0, sending Spain, the defending champion, through to the knockout round and sending Croatia, a fancied outsider, home and on summer vacation.

Italy coach Cesare Prandelli took the unusual step of thanking Uefa president Platini after his side secured qualification for the Euro 2012 quarter-finals.

Italy beat Ireland 2-0 and that, coupled with Spain's 1-0 success against Croatia, ensured the Azzurri finished second in Group C and will play the Group D winners in the last eight of Euro 2012 in Kiev on Sunday.