After the latest estimates on the probability, at 40%, of one European recession, Standard and Poor's machete hits Italy further. The agency has revised downwards the growth estimates of the Italian GDP to 0,5%. It had previously estimated an increase in gross domestic product of 0,8% for next year. The cut - explains the agency - is due to the excessive tax increases envisaged in the "budget maneuver that the Government presented during the summer, which will probably weigh on consumption in 2012."
Private spending could therefore be affected by the maneuver. However, the weakening of the euro could support Italian exports. On 20 September, the agency had downgraded Italy's sovereign rating from A+ to A due to the "weak growth prospects" and the "fragile government coalition".
