Telegraph Live: Reports that Moody’s the Credit Agency could downgrade the credit rating of Italy today. Lets be honest folks Italy is now owned by the European Central Bank, the Government is weak and the PM is up to his neck in political and personal scandals. If you’re a weak Government you go slow on austerity packages, if you have a scandal prone PM you have to be very selective in the austerity package, you cant hurt your friends, your base, you need them to keep you in power. In many respects Italy and Greece are the same, the Governments are afraid if they go to far in cuts they will be out of power for a generation, they don’t want to be Gordon Brown. Thus it can be argued that Moody’s would be right to downgrade Italy, it might be the kick up the backside that Rome needs at the moment, didn’t hurt the US.
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