Italy May Be Cut by Moody's on Concerns Over New Government
- Move highlights doubts about new coalition’s fiscal plans
- Agency cites risk that past reforms might be reversed
Italy’s Premier-Designate Giuseppe Conte
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Italy’s rating may be cut by Moody’s over concerns about the new government’s fiscal plans and the risk that some important past measures, such as pension reform, might be reversed.
While "some of the coalition parties’ original proposals have been modified in the final coalition agreement, they would still lead to a weaker, not a stronger, fiscal position going forward," the agency said in a statement Friday. "So far, Moody’s has assumed a gradual deficit reduction over the coming years, which in turn would allow for a very gradual decline in the public debt ratio."