The government of Premier Matteo
Renzi has helped fuel a surge in acquisitions by foreign buyers
by introducing more pro-business conditions in Italy, Standard &
Poor's said on Tuesday.
Greater economic stability and a slight recovery in gross
domestic product (GDP) is also encouraging acquisitions, the
ratings agency said in its annual report on Italian companies.
Since coming to power in February 2014, Renzi has
overhauled the jobs market and introduced reforms to public
administration, aiming to make the country more attractive to
foreign investors.
Company investments should pick up between 2015 and 2016
after several years of declines, S&P said. It added that this
would be helped by easier access to credit.
S&P warned however that the legacy of the non-performing
loans that have piled on the balance sheets of Italian lenders
during the economic crisis "will "weigh on recovery prospects".
The ratings agency described Italy's recovery after years
of recession as "superficial" and forecast GDP growth of 0.7% in
2015 and 1.2% in the following two-year period.
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