Prime Minister Giorgia Meloni was once a staunch opponent. privatization of national assetsis steering Italy through a dramatic policy shift.Her government plans to unload stakes in major national organizations including ‘Crown Jewels’ post italianRail Behemoth Ferrovi dello start, and the energy giant Eni. The privatization drive is a bold step to rein in Italy’s massive public debt, with the goal of generating a cash inflow of 20 billion euros ($21.6 billion) by 2026.
“Our approach will be light years away from the past, when privatization rhymed with a gift to a lucky entrepreneur,” Meloni said last week. It is possible to sell some shares in a public company without jeopardizing the company’s performance.” .
The choice to sell parts of the postal service to foreign investors marks a departure from the 2018 manifesto she made four years before becoming prime minister. Her position was expressed on Facebook at the time: “No to the privatization of the Italian Post Office. This is a treasure that should remain in the hands of Italians.”
Opposition critics have blasted Meloni’s coalition, which includes Matteo Salvini’s far-right League party, for intending to privatize government-owned real estate.
Andrea Orlando, head of the centre-left Democratic Party, said on Sunday that the regime “has always claimed to be for the motherland, but today it is starting to sell it.”
Despite these efforts, analysts remain skeptical about the impact on Italy’s economy. huge debt At over 2.8 trillion euros ($3 trillion), it is a formidable figure, second only to Greece in the euro area as a percentage of GDP. Meloni’s strategy calls for a break from past divestment practices and aims to maintain the state’s influence while welcoming foreign investment.
Review of ownership
However, the current blueprint suggests reducing the state’s post-Italian holdings to 35%, a significant drop from the planned 51%. The change sparked fierce criticism from opposition parties, who accused the government of betraying the national interest.
A privatization campaign is already underway with the sale of a quarter of Monte dei Paschi di Siena’s shares, part of a broader fiscal consolidation effort. However, these moves have come under scrutiny due to their minimal impact on the debt-to-GDP ratio and concerns that significant dividend income from these profitable businesses will be lost. ing.
market strategy
Italy’s ambitions to attract foreign investors and diversify ownership face historic challenges given the country’s track record of failing to meet privatization targets. Italy’s government has a long track record of failing to meet privatization targets, with annual revenues from the sale of public assets averaging less than 0.1% of GDP, central bank data show. The government is grappling with the aftermath of the pandemic and looming tough EU budget rules, navigating a complex fiscal situation with post-Italian expansionary operations and recent embroilment in tax credit fraud adding to the complexity. ing.
In this high-stakes fiscal restructuring, Italy aims to balance state control with economic imperatives, a task fraught with political, economic and social implications. The outcome of this bold strategy remains to be seen, with the country’s financial stability and sovereign integrity at stake as the government moves forward with its privatization plans.
(Information provided by agency)
“Our approach will be light years away from the past, when privatization rhymed with a gift to a lucky entrepreneur,” Meloni said last week. It is possible to sell some shares in a public company without jeopardizing the company’s performance.” .
The choice to sell parts of the postal service to foreign investors marks a departure from the 2018 manifesto she made four years before becoming prime minister. Her position was expressed on Facebook at the time: “No to the privatization of the Italian Post Office. This is a treasure that should remain in the hands of Italians.”
Opposition critics have blasted Meloni’s coalition, which includes Matteo Salvini’s far-right League party, for intending to privatize government-owned real estate.
Andrea Orlando, head of the centre-left Democratic Party, said on Sunday that the regime “has always claimed to be for the motherland, but today it is starting to sell it.”
Despite these efforts, analysts remain skeptical about the impact on Italy’s economy. huge debt At over 2.8 trillion euros ($3 trillion), it is a formidable figure, second only to Greece in the euro area as a percentage of GDP. Meloni’s strategy calls for a break from past divestment practices and aims to maintain the state’s influence while welcoming foreign investment.
Review of ownership
However, the current blueprint suggests reducing the state’s post-Italian holdings to 35%, a significant drop from the planned 51%. The change sparked fierce criticism from opposition parties, who accused the government of betraying the national interest.
A privatization campaign is already underway with the sale of a quarter of Monte dei Paschi di Siena’s shares, part of a broader fiscal consolidation effort. However, these moves have come under scrutiny due to their minimal impact on the debt-to-GDP ratio and concerns that significant dividend income from these profitable businesses will be lost. ing.
market strategy
Italy’s ambitions to attract foreign investors and diversify ownership face historic challenges given the country’s track record of failing to meet privatization targets. Italy’s government has a long track record of failing to meet privatization targets, with annual revenues from the sale of public assets averaging less than 0.1% of GDP, central bank data show. The government is grappling with the aftermath of the pandemic and looming tough EU budget rules, navigating a complex fiscal situation with post-Italian expansionary operations and recent embroilment in tax credit fraud adding to the complexity. ing.
In this high-stakes fiscal restructuring, Italy aims to balance state control with economic imperatives, a task fraught with political, economic and social implications. The outcome of this bold strategy remains to be seen, with the country’s financial stability and sovereign integrity at stake as the government moves forward with its privatization plans.
(Information provided by agency)