New Draghi-led government has no immediate impact on Italy’s credit quality: S&P

FILE PHOTO: Prime Minister designate Draghi and his new government are sworn-in, in Rome
FILE PHOTO: New Italian premier Mario Draghi presides over his first cabinet of ministers reunion after the swearing-in ceremony, at Chigi Palace Premier's office, in Rome, Italy February 13, 2021. Andrew Medichini/Pool via REUTERS/File Photo

February 23, 2021

MILAN (Reuters) – Rating agency S&P Global said on Monday that the birth of a new government in Italy led by former European Central Bank chief Mario Draghi would not have immediate impact on the country’s credit quality.

The new cabinet last week easily won a confidence vote by both branches of Italy’s parliament, as Draghi called on Italians to pull together to help rebuild the country following the coronavirus pandemic and promised sweeping reforms to revitalise the battered economy.

S&P Global said in a statement that expectations were high that the new government could reform Italy’s economy, fiscal framework and judiciary but added that it had only two years to achieve such goals, as next general elections would take place in 2023.

(Reporting by Giulio Piovaccari, editing by Cristina Carlevaro)