Politicians from Italy's two main parties disputed the impact of the country's latest credit downgrade, while the Economy Minister sought to play down concerns about debt sales.
"There is no time to lose, political forces should find a compromise on a new government otherwise the country heads towards disaster", said Enrico Letta, vice secretary of Italy's centre-left Democratic Party (PD).
But former Prime Minister Silvio Berlusconi's People of Freedom (PDL) party dismissed the downgrade. "The rating agencies are not the bible, they are private companies whose aim is financial profit", said Angelino Alfano, secretary of Berlusconi's centre-right party. "For us it would be better to return to the ballot boxes in June than to push the country towards a disaster", he added.
Fitch's rating on Italy remains three notches above junk status, while Moody's rates the country Baa2, two notches inside investment grade territory, and Standard & Poor's BBB-plus, three notches above the danger zone. All the three agencies have a negative outlook on the country.
The PD, which won control of the lower house but failed to win the upper house Senate, has outlined an eight-point platform to try to win support for a new government. Centre-left leader Pier Luigi Bersani ruled out any agreement with Berlusconi's centre-right but hopes to win support for a minority government. To date, the anti-establishment 5-Star movement headed by former comedian Beppe Grilli has refused to form a stable alliance with the centre-left.
Economy Minister Grilli said the country would continue on the reform trail started by Mario Monti's technocrat government. "Italy is moving within the normal timeframe every country needs in order to take political decisions", Grilli said, adding he expected clarity on the political front in the next few days.
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