MILAN: Italy is likely already in recession and an economic downturn across the euro zone has made the task of Mario Monti's new government of technocrats much more difficult, Fitch ratings agency said on Thursday.
"Sustaining political and public support for structural reforms and austerity will be challenging in the face of rising unemployment. Convincing investors that the reforms will be effectively implemented and will boost economic growth over the medium term will be equally if not more challenging," it said in a statement after Monti presented his programme in the Senate ahead of a confidence vote.
Fitch said Italian bond yields had risen to a level which, if protracted, would place public debt on an unsustainable path. It said that because of medium-term bond redemptions for 193 billion euros in 2012, including 36 billion euros in February alone, it was "imperative" for Italy to retain the market access.
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