The political crisis threatens the achievement of Italy's budgetary objectives. This is Fitch's warning. In a note, the US rating agency underlines that 'the potential fall of the coalition government puts short- and medium-term fiscal policy targets at risk and creates uncertainty in a crucial period in which the 2014 stability law should be finalised' .
The agency underlines that 'prolonged uncertainty about economic and fiscal policies, less confidence that the debt-to-GDP ratio will fall starting from 2014 and failure to respect the requirement to establish a balanced budget are 'potential triggers' for a downgrading of Italy's rating, now to 'BBB+' with a negative outlook.
