Steady improvements in fiscal fundamentals and strong medium-term growth prospects drive the upgrade. Moderate economic diversification and adverse demographic trends remain key credit constraints.

A firmly declining debt trajectory and favourable medium-term growth prospects drive the Outlook revision. Low economic diversification and adverse demographic trends are the main credit constraints.

Euro area membership since 2023, favourable public debt trajectory and sound structural reform momentum support the ratings. High public debt levels, modest growth potential and limited economic diversification remain rating challenges.