[ad_1]
The rating of the rating agency Standard and Poor's does not change for Italy. She stays at BBB. But the agency shows signs of concern, however, moving from stable to negative. Clearly, the agency does not rule out lowering the rating in the coming six months. Standard and Poor's believes that "the economic and budgetary policy of the Italian government weighs on the country's growth prospects".
The agency, however, did not follow its competitor Moody's in lowering the rating. The latter had degraded the Italian rating of "Baa2" to "Baa3" on October 19, making it fall to the last notch of the category "investment", which precedes the speculative category. She explained that she was worried about a stabilization and not a decrease in public debt over the next few years. However, with a stable outlook, this means that it should not degrade this new rating in the next six months.
This decision is a new obstacle in the budget of Italy, already engaged in a standoff with Brussels. Brussels, which rejected Tuesday the draft budget of the country, denouncing "a clear deviation, clear, badumed and, by some, claimed" compared to European rules.
The ruling coalition in Rome, made up of the League and the 5-star Movement, has opted for an anti-austerity budget, forecasting a deficit of 2.4% of GDP in 2019, compared with 0.8% promised by the previous one. center-left government.
Since mid-May, the Milan Stock Exchange has lost nearly 22%. The banking sector, which counts in its portfolio 372 billion euros of Italian sovereign debt, according to the Central Bank, was the most affected, deviating by 37%. For its part, the spread, the closely watched discrepancy between Italian and German borrowing rates, has more than doubled. Friday night, waiting for the opinion of S & P, it closed up very slightly, to 310 points, while the FTSE Mib lost 0.70%.
Italian debt at 2,300 billion euros
Markets and the European Commission are worried about the Italian budget because of the already huge debt of the country: 2.300 billion euros, or 131% of its GDP, while the European ceiling is set at 60%.
Rome has two weeks to review his copy. Otherwise, it would be exposed to an "excessive deficit procedure", which could lead to financial sanctions. European Central Bank President Mario Draghi said he was "confident" Thursday of the possibility of an agreement. But the two party leaders of the coalition, Matteo Salvini and Luigi Di Maio, they do not intend to give way.
For a week, Matteo Salvini has been hammering his intention not to touch a comma in the draft budget. He quipped last night Standard & Poor's decision: "The rating agencies have not realized the global crisis?" For his part, Luigi Di Maio sees rather good news: "Those who were waiting for S & P to continue rowing against the government had a bad surprise tonight: the note from Italy was confirmed. We continue! Change is on the way, "he said.
Rome has until 13 November to present a revised budget in Brussels.
[ad_2]
Source link
