WASHINGTON (Sputnik) — The failure of the Italian constitutional referendum and subsequent resignation of Prime Minister Matteo Renzi will increase the political uncertainty in the country, Fitch Ratings said in a press release on Monday.
On Sunday, Renzi announced he would resign after Italian voters rejected proposed changes to the country’s constitution.
"Renzi's resignation will trigger a period of political uncertainty as Italy's president consults with party leaders on how to form a new administration," Fitch stated.
Italy’s economic stagnation has made it more difficult to reduce government debt and unemployment.
Fitch said Italy’s GDP is expected to increase by 0.9 percent in 2017 and the potential for growth over the medium term remains weak.
