Fabrizio Pagani: with the coronavirus, "we risk seeing Italy drop out"
For this former head of the peninsular finance ministry, the euro zone is exposed to a risk of economic fragmentation after the health crisis.
Despite its high public debt, Italy still has resources to deal with the crisis linked to the Covid-19 pandemic, and in particular high private savings, says Fabrizio Pagani, head of strategy at Muzinich & Co. On the other hand, the country could drop out if it does not take sufficiently strong measures to support activity, warns the one who was the chief of staff to the Minister of Finance between 2014 and 2018.
The rating agency Fitch has just downgraded Italy's rating, and the other agencies could follow… Is the country's public debt, which should stand at 155% of gross domestic product (GDP) for 2020, sustainable?
For now, the Fitch and Standard & Poor’s agencies have a different assessment of the measures taken by the European Central Bank (ECB), and how they will stabilize Italian debt.
For this former head of the peninsular finance ministry, the euro zone is exposed to a risk of economic fragmentation after the health crisis.
Despite its high public debt, Italy still has resources to deal with the crisis linked to the Covid-19 pandemic, and in particular high private savings, says Fabrizio Pagani, head of strategy at Muzinich & Co. On the other hand, the country could drop out if it does not take sufficiently strong measures to support activity, warns the one who was the chief of staff to the Minister of Finance between 2014 and 2018.
The rating agency Fitch has just downgraded Italy's rating, and the other agencies could follow… Is the country's public debt, which should stand at 155% of gross domestic product (GDP) for 2020, sustainable?
For now, the Fitch and Standard & Poor’s agencies have a different assessment of the measures taken by the European Central Bank (ECB), and how they will stabilize Italian debt.
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