The rating agency said Italy's recession was one of the deepest in Europe, with an expected contraction of 1.8 percent in 2013. Fitch added that the size of the country's debt as a proportion of its economy is expected to peak at 130 percent this year, higher than an earlier estimate of 125 percent.
Talks on forming a new government aren't expected to begin before March 20.
The Italian Finance Ministry responded with a statement highlighting the positives in the Italian economy, including a public sector deficit of 3 percent of GDP last year, and noting that the political uncertainty
''is
part of a normal democratic process. ''
The ministry expressed confidence in Italy's ability to find political solutions and
''therefore continue the ongoing reform process." It noted that Premier Mario Monti's caretaker government remains in place in the meantime. |