Improvements in economic resilience and the external position drive the ratings upgrade. Adverse demographics, wage-productivity growth imbalances and exposure to external shocks remain credit challenges.

Sustained economic and fiscal performance drive the Outlook change. Adverse demographics, low productivity growth and external vulnerabilities remain rating constraints.

Fiscal consolidation efforts, a moderate debt burden, euro area membership and a commitment to structural reforms support the rating. Unfavourable demographics, a low potential-growth outlook and vulnerability to external shocks remain challenges.