Standard & Poor's has lowered Italy's credit rating from A+ to A. This is significant politically more so than economically. Although Italy is struggling more than most European countries, at least in the markets, its adjustments (three GDP percentage points) are faring better than Zapatero's. Only owing to their bulky debt are they posting macroeconomic figures that appear worse than ours.
Despite the improving economy, a dark cloud obscures the future of politics in Italy. Berlusconi has several strikes against him, and he is more worried about personal battles than one of his country's worst economic disasters in history. In the near term, there are few if any inspiring political paths onto which Italy can redirect itself. The agency is not showing its disapproval of Italy's measures, but of its intrinsically fragile government and weak motor for driving growth.