Moody's brings Italy's rating to Baa3, bringing it one step away from 'non investment grade'. The reasons for the downgrade due to the financial maneuver of the Italian government. What does not convince Moody's are the growth forecasts included by the government in the maneuver, judged too optimistic. Numbers that will not produce the hoped-for decline in debt which will remain stable at around 130% of GDP. Also due to the lack of “a coherent reform plan”. A picture, therefore, far from rosy, and that could get worse - Moody's emphasizes - if there were to be a further escalation of tensions with the European Commission, with the chances of Italy's farewell to the euro. The Italian maneuver continues to frighten Brussels, which however does not fear a 'contagion' effect, despite the spread continues to be 'overheated', also due to the tensions that have occurred in recent days, writes Ansa. The day after the delivery of the letter with the Commission's findings, Pierre Moscovici, in his capacity as 'guardian of the accounts' of the EU countries, reiterates that there is no willingness to go to the clash and that, indeed, great confidence remains on the possibility of reaching an agreement through the "constructive dialogue" entered into with the Italian institutions. However, the Commissioner for Economic Affairs clarifies, the answer will be expected by Monday at noon from the Economy Minister Giovanni Tria. It is not so much the deficit at 2,4% that is important, explains the Frenchman, as the deviation from the 'structural' adjustment - defined in the letter as “unprecedented” - which touches the point and a half of GDP. Not only are the plans presented by the government in Brussels lacking the required adjustment for next year of 0,6% but, on the contrary, the structural balance (i.e. the deficit net of the effects of the economic cycle) worsens by a further 0,8 %. And in the three-year horizon presented in the draft budgetary plan (Dbp) there is no clear indication of a decline in debt. Debt that remains "the least productive and most stupid expenditure of all", Moscovici emphasizes, clarifying that the Commission has no punitive intentions against Rome - the letters are sent, according to EU rules, also to Spain, Portugal, France, Belgium and Slovenia ". And Luigi Di Maio seems to respond to this remark by assuring that “Italy and its government's goal is to reduce the debt. This maneuver - Di Maio explains on Fb - aims to bring Italy back on the right European tracks ”. Meanwhile, it is difficult for the actual text of the Budget Law, approved by the Council of Ministers, to arrive in Parliament before the closure of this first phase of confrontation with Brussels, even if the legal deadline for sending it would be set at October 20. Meanwhile, the value of the spread dances around 300 basis points.
