Mattarella signed the Italicum. Thumbs by Fitch and Moody’s – The Republic

Rome – The President of the Republic, Sergio Mattarella , has signed a new electoral law. Meanwhile, analysts at Fitch in a report released today just hours before the final approval dell’Italicum, they write: “The passage of the new electoral law in Italy represents progress on the path of institutional and structural reforms which if continued would lead to a strengthening in the medium-term sovereign credit profile by reducing the political risk that weighs on decisions of a political and economic. But for the moment – said the report – the economic reforms will remain dependent on political maneuvering “.

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The reform, continue to analysts of international rating agency, should “indirectly support the credit profile of Italy reducing risk that explosions of political volatility undermine the ability of governments to implement structural reforms as well as shorten its life. ” But the effectiveness of this law will depend “largely” by the proposal of constitutional reform now being discussed that redefinirebbe the relationship between the two Houses. And as noted by Fitch, the process to get to this reform is complicated and requires several steps.

How does INFOGRAPHIC Italicum

“The risk of new political tensions in the short term – the report says Fitch – has been held in check since Matteo Renzi became prime minister in February 2014″. Noted that the current bonus system allows the governing coalition to have a majority of seats in the Chamber of Deputies, Fitch emphasizes that the high popularity of Renzi allowed to “use the opportunity of elections to push through measures in parliament, including electoral reform. Nevertheless, the political risks could increase if the popularity of Renzi and falls are possible divisions within the parties. “

The government observes the agency , he continued to carry out its program of macroeconomic structural reforms, including the Jobs Act that would “increase the flexibility of the labor market and increase the weak growth potential of Italy”. “The latest figures – concludes Fitch – indicate that Italy finally released from its deep recession this year and the prospects of a modest cyclical recovery and its positive impact on the finances have provided support to our decision to confirm the ratings of Italy to BBB + with a stable outlook last month. “

In an explanatory statement, which does not imply any action on the rating, Moody’s also noted as the approval of electoral reform is” credit positive “, she have a positive impact on the merits of the claim, “if accompanied by the reform of the Senate.”

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Italicum

reforms

electoral law

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