Italy: Political risk is high, but hardly penalised by the financial markets; why?

The economic policies currently being conducted in Italy cannot correct the country’s structural problems, and in particular the stagnation of Italian purchasing power. This means that if the coalition in power fails in its economic policies, political risk will remain high in Italy. Yet , this political risk policy is hardly being penalised in Italy (on interest rates and different risk premia). Either investors are not aware of this; or the fact that the holding of financial assets is very domestic in Italy weakens the valuation of political risk significantly .