Italy Puts 'Crown Jewel' Up For Sale As Giorgia Meloni-Led Govt Tackles Massive Public Debt
Date
1/29/2024 11:00:27 PM
(MENAFN- Live Mint) "Italy is privatising part of its
postal service amid efforts to tackle public debt. The hard-right government led by Prime Minister Giorgia Meloni aims to raise €20 billion by 2026 through sale of stake in Poste Italiane - an institution that she once dubbed a \"crown jewel\" that must stay in state hands - and other entities. Analysts however suggest that the transactions will do little to reduce the country's debt mountain.
\"Our approach will be light-years away from what we have seen in the past, when privatisation rhymed with gifts for lucky entrepreneurs...We can sell some stakes in public companies without compromising public control,\" Meloni said last week Italian government aims to sell stakes in Poste Italiane (which turns big profits through its insurance and banking operations) as well as rail company Ferrovie dello Stato and energy giant Eni.
ALSO READ: 'Meeting friends is...': PM Modi responds as 'Melodi' selfie with Italy's Giorgia Meloni goes viralThe plan has attracted criticism from the country's Opposition with Democrat Party leader Andrea Orlando accusing the government of 'selling the homeland'. The remarks are also a sharp deviation from the PM's earlier stance on the matter.“No to the privatisation of Poste Italiane. It is a crown jewel that must remain in the hands of Italians,” Meloni had said in a 2018 Facebook post partial privatisation campaign however kicked off in November 2023 with the the government opting to sell a quarter stake in bailed-out lender Monte dei Paschi di Siena - the world's oldest bank - for € 920 million. Another privatisation required by Brussels -- the sale of a stake in ITA Airways to German airline Lufthansa - is under investigation by the European Commission over fears it could hurt competition.(With inputs from agencies)
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