A No in the referendum on a
reform of Italy's political machinery would be seen "as a
negative shock for the economy and the Italian credit rating,"
Fitch's head of sovereign ratings for Europe and the Middle
East, Edward Parker, said Tuesday. "Any political turbulence or
problems in the banking sector that may have repercussions on
the real economy or on public debt could lead to a negative
intervention on Italy's rating," he added. Italy is set to vote
in late November or early December on the reform that would turn
the Senate into a leaner, regionally based assembly with limited
lawmaking powers, cutting gridlock and expenses. A No vote would
have a knock-on effect on the government of Premier Matteo
Renzi, who initially said he would quit if the reform was
defeated but has recently hinted that would no longer be so.
Italy's business leaders have come out strongly for a Yes vote.
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