Prime minister Giorgia Meloni on Saturday said the upgrade of Italy’s sovereign rating by Fitch was a ‘clear sign of confidence’ and a validation of her right-wing government’s fiscal austerity plan.
The agency raised the rating of Italy—the eurozone’s third-largest economy—to ‘BBB+’ from ‘BBB’ with a stable outlook.
‘The upgrade reflects increased confidence in Italy’s fiscal trajectory,’ Fitch said.
This is ‘underpinned by a growing record of fiscal prudence’ and commitment to meeting targets under the new EU fiscal framework, it added.
‘Italy gets a promotion from Fitch: a confirmation that the path taken by our government is the right one,’ Meloni said.
Debt-laden Italy’s public deficit has been cut by more than half, falling to 3.4 percent of GDP last year from 7.2 percent in 2023.
Fitch said the upgrade also took into account Italy’s stable political environment.
‘Political stability, credible economic policies, and support for those who create jobs and wealth are bearing fruit,’ Meloni said, boasting of ‘healthy finances’ and ‘responsible budget choices.’
‘These are not slogans, but concrete results,’ she said, calling it a ‘clear sign of confidence from international markets.’
‘We have put Italy back on the right track,’ added finance minister Giancarlo Giorgetti.
Italy posted GDP growth of 0.7 percent in 2024 -- falling short of government expectations—and also in 2023.
Italy carries a much higher debt load than France, which was downgraded by Fitch, at 135 percent of gross domestic product last year, versus 113 percent for its northern neighbour.
Italy’s medium-term outlook is also bleak, with the country suffering from low productivity and an aging population.