Back
30 Sep 2013
Fitch warns political instability in Italy could harm fiscal goals
FXstreet.com (Barcelona) - Fitch ratings agency released a statement today on the situation in Italy, in which it warns that should Enrico Letta's coalition government lose Wednesday's confidence vote, it could endanger the country's fiscal goals.
“Prolonged uncertainty over economic and fiscal policies, reduced confidence that public debt/GDP will fall from 2014 and failure to comply with the constitutional requirement of a balanced budget are potential rating triggers for Italy's 'BBB+'/Negative rating,” Fitch said.
If the Italian coalition government collapsed, making it impossible for the country to fulfill European Union's Stability and Growth Pact requirements, EU's support in the form of ESM or OMT become considerably limited.
“Prolonged uncertainty over economic and fiscal policies, reduced confidence that public debt/GDP will fall from 2014 and failure to comply with the constitutional requirement of a balanced budget are potential rating triggers for Italy's 'BBB+'/Negative rating,” Fitch said.
If the Italian coalition government collapsed, making it impossible for the country to fulfill European Union's Stability and Growth Pact requirements, EU's support in the form of ESM or OMT become considerably limited.