Italy downgraded, we can not resign ourselves to always end in punishment – BBC

The timing of the reforms

Milan , December 6, 2014 – 7:49

     
     
 

Standard & amp; Poor’s did not give us any postponement. If Europe took until March before deciding on our public finances, the American rating agency, (a company that measures the reliability of companies and States in return the debts), decided yesterday. Subscribe to our debt is considered less safe than buying bonds from countries such as Colombia or Mexico as we present a risk similar to that of countries such as Romania, Morocco and Russia. The reasons? We grow too little, almost nothing, and in these conditions support a debt level as ours is very difficult.

This is not one of the many failures which in recent years has seen Italy go down in the ranking of nations. Having denominated debt as BBB- means missing very little, one step, to be considered a country whose securities issues are “junk.” A term that has strong but practical effects. Some funds and institutional investors are given own rules according to which they can subscribe emissions that are rated, one vote, below that altitude. As the government can ascribe to her about the fact that he had placed at the center of European debate the words growth and employment, this has not turned into facts. The numbers tell by Standard & amp; Poor’s an accurate history. That of a government that has changed priorities but whose actions were judged unsatisfactory. Last June, a few months of taking Matteo Renzi at Palazzo Chigi, analysts had already sent a warning.
Estimates of the increase in gross domestic product (GDP) Italian had been reduced from 1 percent starting in 2014 to 0.5%, and from 1.9 to 1% for 2017. With The rejection came a new cut: we grant a possible exit from the recession in 2015 but with a more meager 0.2% growth in GDP. With a debt by S & amp; P in 2017 will be at an altitude of 2.256 billion is clear that there are very few resources to devote to investment and thus to support the development (and incidentally we must see if the spread yesterday to share 118 will be what we deserve after the vote of the S & amp; P).

It may seem strange that a few days by the measure on the Jobs Act became law, a judgment so heavy arrivals. But if it is acknowledged to Renzi had done “some progress” in the workplace, it is feared that the decrees of the law may weaken as decided by Parliament. It is clear that without telling S & amp; P appreciates the decision by which moved other countries in dealing with their own crisis. Proof of this is the promotion of Ireland yesterday.
But in indicating the reasons for the decline in competitiveness of our country, S & amp; P highlights the work and wages, noting many other weaknesses, from the service sector to justice, to energy costs; is emerging as a framework of overall confidence in the ability of Italian can quickly deal with knots that strangle development.

So, we could also console thinking that the rejection of yesterday is out of place even as you start major reforms. We would do a mistake. We do not need S & amp; P to analyze our faults. We know them very well. Yesterday we were reminded, however, once more, that the time for reform is not tomorrow, but had to be yesterday. And so now we have to run at the cost of being out of breath. Palazzo Chigi, yet last night, has committed. No longer enough.

December 6, 2014 | 7:49

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