Moody’s: Doubtful of Italy reforms, plays down Euro exit risk
|The US-based ratings agency, Moody’s Investors Service, came out with a report on the Italian structural reforms and the potential risk of a Euro exit, Reuters reports.
Sarah Carlson, Senior Vice President in the Moody’s sovereign team noted, “Italy has long had an elevated debt burden and has long had problems generating economic growth and the political environment that can allow structural reform efforts to take place is also in question.”
“It comes down to the debt trajectory and growth which is linked to the structural reform effort.”
However, Moody’s played down fears for eurozone stability stemming from Italy and the possibility of the country exiting the single currency, noting Italians had shown reluctance to leave the euro. Italy was “more integrated with Europe than has been feared over the past few years”.
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