“The key issue Italy is facing right now from an investor perspective is the political risk“, which at the moment is heavier than the fiscal and economic one. This is the judgment of David Riley, chief operating officer ratings at Fitch.
"The Monti government has gained a lot of political credibility for the measures he has taken – Riley underlined again in an interview with Bloomberg TV -. But there are concerns about who will lead Italy next yearafter the elections.
According to Fitch's manager, it is important that the current Premier can work to see "the light at the end of the tunnel". In short, Italy will be able to avoid further downturns only if Monti does everything in his power to implement the austerity plans and complete the many reforms underway.
Riley then underlined the importance for the future of our country of "what will happen in Spain“. Madrid is still in the markets, but it is still difficult to establish whether it will be able to stay there without external support.
Broadening the perspective, Riley let it be known that “the countries of the euro area could undergo a new downgrading if they do not make progress in resolving their crisis by the end of the year”, despite “the recession in Spain and Italy is eroding political support for austerity and the euro”.
