Italian delays over Recovery plan negative for rating - Scope

Kitco Media
By Reuters
Published:
Updated:
Reuters
By Sara Rossi and Alessia Pe MILAN, April 3 (Reuters) - Significant delays in Italian efforts to meet the targets in its pandemic Recovery Plan would likely lower the country's medium-term growth prospects, with a negative impact for its credit rating, Scope Ratings said on Monday. The European Commission has frozen an overdue 19-billion-euro tranche of post-pandemic funds under its Next Generation EU (NGEU) programme, and Italy has until the end of April to persuade Brussels to release the money. "The timely implementation of NGEU-related reforms and investments is critical to raise the country's medium-term growth prospects, and thus ensure the sustainability of its public finances," Scope Ratings analyst Alvise Lennkh-Yunus said in comments emailed to Reuters. "Significant delays in the implementation of reforms or investment projects would thus likely lower Italy's medium-term growth prospects, which would be negative for the country's credit rating." (editing by Gavin Jones)

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