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Fitch, the maneuver strengthens the Italian rating

According to the rating agency, "the additional measures devised by the Government to achieve a balanced budget in 2014 increase the credibility of the financial institution" – but in the event of a "failure of budget objectives" our rating risks being revised.

Fitch, the maneuver strengthens the Italian rating

The budget consolidation maneuver that Parliament will approve on Friday "strengthens Italy's rating". This is Fitch's positive judgment on the measure decided by our country. But the real message launched by the American agency is more like a warning than a reassurance: in fact, if the go-ahead for the measures were postponed, the rating (currently AA-) could be revised. The same goes for the “failure of budgetary objectives”.

"The marked increase in yields on Italian government bonds - writes Fitch - and on government bonds of other Eurozone countries reflects a crisis of confidence in the response of European politics to the Eurozone crisis, rather than a deterioration in credit standing fundamentals of sovereign countries. The announcement by the Italian Government in relation to further measures to achieve a balanced budget in 2014 increases the credibility of the manoeuvre”.

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