The Fitch agency confirmed Italy’s rating, in particular the long-term issuer default rating (IDR) in foreign currency, at ‘BBB’ with a stable outlook. The agency informs this in a note. “Italy’s rating is supported by its large, diversified and high value-added economy, membership of the eurozone and the strength of its institutions compared to the peer group median. These credit characteristics are balanced by macroeconomic fundamentals and weak fiscal conditions, in particular from very high public debt, relatively loose fiscal policy following the pandemic, reduced economic growth potential and, more recently, a higher income environment”, explains Fitch. Furthermore, the Stable Outlook reflects the projection Fitch’s report of “a stabilization of public debt relative to GDP in the later years of our forecast, close to the level at the end of 2022 (and similar to the level predicted in our previous analysis), an expected recovery in the execution of EU-funded projects that provide moderate support for growth, and the continued broad stability of the coalition, which limits the most pronounced political risk.”
In short, positive news that arrives on the day the Democratic Party takes to the streets. -“They announced catastrophes and once again they were proven wrong: the ratings agency Fitch confirms the ‘BBB’ for Italy, rewarding our nation’s newfound stability. And to the anti-Italian owls on the left, to change, it’s still another fool. Keep it up”, wrote Carlo Fidanza, head of the delegation of the Brothers of Italy-Ecr to the European Parliament on Facebook. “For the Democratic Party it is really a ‘bad moment’ – declares the president of the Fratelli d’Italia senators, Lucio Malan – He takes to the streets against the government; Elly Schlein announces that ‘the Meloni government has already failed’, but Fitch confirms the rating In short, while rooting against Italy, the third international rating agency promotes the government, demonstrating that foreign investors trust the center-right, the policies implemented this year and the results that were obtained. It is a coincidence that in his report Fitch writes that ‘public support for the Meloni government has remained and its parliamentary majority is more stable than that of many previous administrations, providing a platform for medium-term economic and fiscal planning'” .
Source: IL Tempo
Emma Fitzgerald is an accomplished political journalist and author at The Nation View. With a background in political science and international relations, she has a deep understanding of the political landscape and the forces that shape it.
