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S&P confirms Italy's rating, IMF warns: "The government cuts the debt"

The racing agency confirmed to Bbb the Italian racing with a stable outlook. Kammer (IMF) in an interview with Repubblica: "the super bonus alone is not sufficient to explain the debt problem"

S&P confirms Italy's rating, IMF warns: "The government cuts the debt"

No surprise. As expected on Friday evening S&P confirmed Italy's "BBB" rating, with a stable outlook, in line with the decisions taken last autumn. However, compared to a few months ago, the perspective of the debt has changed, which is now seen as increasing by 2,5% in its ratio to GDP between 2024 and 2025-26.

The rating season will continue in the coming weeks: on 26 April with Dbrs (BBB-high with stable outlook), on 3 May with Fitch (BBB, stable outlook) and on 31 May with Moody's (Baa3 with stable outlook).

Kammer (IMF): “The government cuts public debt”

And he also focused on public debt Alfred Kammer, director of the European Department of the International Monetary Fund who in an interview with Republic called on the Italian government to cut public debt.

According to Kammer, the superbonus is not enough to explain the debt problem on the rise in Italy “It is one of the explanations, but the elimination of the Superbonus alone will not be sufficient to achieve consolidation,” he says, underlining that privatizations will not be enough to reduce it.  
The IMF predicts that Italian GDP will grow by 0,7%, and in 2026 it will decline to 0,2%, while the government estimates 1%. The only way to reverse the trend, says the director of the European Department of the IMF, is to “Continue structural reforms and measures undertaken with Pnrr. The Plan must be fully implemented, but we also recommend that the Italian government develop a new medium-term program that continues structural reform efforts to increase productivity. It is important to address the aging population and the potential contraction of the workforce."

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