Weak growth prospects and fears of a political gridlock in Italy has raised concerns over the country's medium-term fiscal outlook, sparking calls for further structural adjustment.

On Friday, the rating agency Standard & Poor's said it had revised its outlook on Italy's credit rating from stable to negative due to "heightened downside risks" in the Italian government's debt reduction plan.

Italy's credit rating on long-term debt remains at A+. However, the ratings agency said the country's