The constitutional reform in Italy to help create a more favourable climate for economic reforms, speeding up the legislative process, in a Country where "political uncertainty and the downside risks have increased". The rating agency Fitch is explicit about endorsementa compared to the referendum wanted by Matteo Renzi and, under the economic profile, is the confirmation of the rating BBB+ of Italy. But, at the same time, lowered theoutlook to 'negative' from 'stable'. The agency provides a growth for the Italy of 0.8% in the 2016, and 0.9% in 2017, down to the previous estimates. the Fitch, moreover, estimate a debt to the 132,8% in 2016 and to 133,3% in 2017, and revises downward the growth of Italy, with the gdp will rise by 0.8% in 2016 and 0.9% in 2017.
The weak growth of theItaly, says the agency, "makes it more difficult to reduce the debt, credits impaired banks and unemployment, and is likely to increase the support to populist political parties," says Fitch, emphasizing how the constitutional reforms in the referendum would help to create a more favourable climate for economic reforms, "speeding up the legislative process, especially by reducing the role of the Senate".
In April, Fitch had expected a growth of 1.0% this year and 1.3% the next. There was also growth In the debt, which will amount to the 132,8% in 2016 from 132,3% in 2015. The debt is expected to peak in 2017 at 133,3%, and "to decline more slowly, reaching 128% in 2020". "The banking system Italian suffers from a high level of impaired loans, which add risks to the economy. The sufferings amount to 200 billion euro at the end of August, while the total impaired loans is 331 billion at the end of June, equal to 16.4% of total loans and 20% of the gdp," observes the Fitch, according to which the deficit will be in 2017 at 2.4% and in 2018 to 1.7%. The Draft Budgetary Plan sets the deficit at 2.3% of gdp for 2017.
