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"Boots" stumble. Italy's rating was down a step by Standard & Poor's
Economy and political environment degrades and GDP growth promises to be decreasing in the medium term. So he motivates Standard and Poor's surprising decision to cut Italy's rating, the third economy of Europe in size. Country rating given by S & P Italy went from A + / A-1 + to A/A-1, with a negative outlook. The decision surprised markets and the effect was felt immediately: the euro fell half a cent against the U.S. dollar. Agency, which had closely monitored the list of Italy since May, said the prospect of economic growth has worsened and that there are few signs that the government of Prime Minister Silvio Berlusconi's center right to respond effectively to these challenges. Under continuous pressure to reduce deficit of 1,900 billion euros, the government developed a plan for cutting spending by 60 billion euros. It passed by Parliament last week, announcing a balanced budget only slightly for 2013. Italy's public debt is about 120% of GDP. State debt crisis in the euro area increasingly strong pressure on the government in Rome to reduce debt and budget deficit. Investor confidence in Berlusconi government's ability to avoid the crisis has not been strengthened by increases in the tax package and spending cuts approved last week. The measures were agreed amid strong political tensions, long, and analysts believe that program will not significantly help the problem of economic stagnation. "We believe weak economic activity makes the Italian government's revised fiscal targets to be difficult to achieve. In addition, what we consider to be a response to the pressures of recent market tentatively suggests the perpetuation of political uncertainty on the approach to economic problems of Italy "write the S & P in a cominucat. The agency added that reducing the budget deficit could be difficult or impossible, because the government relies heavily on revenue growth in a country where taxes are already high and growth prospects will continue to weaken. Also, the Italian financial market interest rates will increase, estimated S & P. Italian official sources said on Monday that the government is preparing to reduce its economic growth forecast to 0.7% this year from 1.1%, and the one in 2012 to "more than 1%".
