“What can happen after the elections” – Libero Quotidiano

“What can happen after the elections” – Libero Quotidiano
“What can happen after the elections” – Libero Quotidiano
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The rating agency Fitch keeps Italy a BBB, a step just above the so-called “junk” category. At the same time, in his latest report, Fitch warns the future government, which should be center-right and led by Giorgia Melons: according to the rating agency, the political and economic situation of the next executive is likely to be complicated for a number of factors.

“Political uncertainty – writes Fitch in his report – as well as the energy shock could have a negative impact on growth and public finances, putting pressure on the rating”. If the rates on Italian bonds were to remain around 4%, according to Fitch “fiscal consolidation efforts by the next government will be necessary to reduce the deficit / GDP ratio”. A recession of -0.7% is also forecast for 2023 and, faced with a “light” fiscal consolidation, the debt would rise again towards 157% of GDP in 2031.

The good news is that Fitch does not believe that a possible electoral victory of the center-right is a big problem (“not necessarily a center-right coalition will go on a collision course with the European Union”), but at the same time it is reported that “the future governments will have to aim for higher primary surpluses ”, limiting room for maneuver on taxation and an increase in pension spending.

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The article is in Italian

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