On Friday, Moody’s raised its outlook for Italy to stable from negative.
The seeds of a virtuous cycle in Italy are planted. With the crisis behind Italy, deficits under control and Renzi attempting to forge a dynamic government, the prospects for Italy are good. The ratings agencies could add to a virtuous cycle that lifts growth and attracts investment. Some of the investment will come from stronger core countries but it will also come from abroad and help the euro.
