The international rating agency Moody's lowered the credit rating of Italian government bonds by three positions at once from Aa2 to A2 with a negative outlook. Moody's explains its decision with an increase in risks for long-term investments in the eurozone, which are caused by growing investor uncertainty about the creditworthiness of its countries. The agency says that "the market is not currently positioned for the euro." The Italian government is already accusing rating agencies of politicized forecasts, ITAR-TASS reports.
Moody's is concerned about economic growth forecasts in Italy due to structural problems in the eurozone and a global slowdown in the economy. The key issue that the agency points to is the so-called “political and economic risks of fulfilling tasks”. Moody's are not sure that the governments of the eurozone countries will be able to quickly find a convincing solution to the euro problem and bring it to life.
Due to the difficult situation in the eurozone, the Italian economy was very vulnerable, experts say Moody's. However, in their opinion, the country is still very far from declaring default on debt obligations.
Although Italy currently does not have a serious need for external loans and the level of loans in the private sector is rather low, Prime Minister Silvio Berlusconi has already said that the decision of the agency was expected, but "the Italian government will do everything possible to achieve its goals." According to the prime minister, the European Commission approved the savings plan developed by his government in order to eliminate the budget deficit by 2013.
Italy's foreign debt is one of the largest in the eurozone and is approaching 2 trillion euros. The Milan Stock Exchange is experiencing a decline in business activity with a decrease in the main index and maintaining the maximum gap between the value of Italian government bonds and German securities, which are considered the most reliable.
A decrease in Italy's sovereign rating will trigger a fall in the rating of Italian banks. If this happens, then it will be even more difficult for Italian banks to receive loans.
This summer, the 17 governments of the eurozone countries agreed to expand an economic stability fund designed to prevent default in the eurozone countries, but their decision has yet to be approved by the parliaments of all states. The delayed reaction of European politicians to the development of the debt crisis is due to the complex institutional structure of the European Union. This was indicated, in particular, by the head of the European Commission, Jose Manuel Barroso. This writes the "Russian newspaper".