Italy’s state-controlled companies: Letting go, slowly

MATTEO RENZI, Italy’s new prime minister, is keen to show off his pro-market zeal. His government has promised to speed up and extend the privatisation programme unveiled in November by his predecessor, Enrico Letta. Last month it endorsed plans by Finmeccanica, a conglomerate in which the state holds a controlling 30.2% stake, to sell its rail assets; the firm wants to focus on aerospace and defence. But a proper shake-up of Italy’s state-controlled companies is a long way off.Mr Renzi is pressing ahead with Mr Letta’s scheme, which aims to raise €8 billion-10 billion ($11 billion-13.7 billion) towards reducing Italy’s public debt, now 132% of GDP. The treasury intends to float 40% of Poste Italiane, which runs the postal service and BancoPosta, a retail bank, and 49% of Enav, which runs air-traffic control. The Cassa Depositi e Prestiti, a state-owned investment vehicle, will list 50% of Fincantieri, Europe’s biggest shipbuilder, and 60% of Sace, Italy’s export-credit agency. Private investors are being sought for CDP Reti, which controls the gas and electricity networks, and Grande Stazioni, which is owned by Ferrovie dello Stato, the national rail company, and manages the 13 biggest railway stations. To this Mr Renzi’s government may add Ferrovie itself. Because market conditions have improved, it may move faster than previously planned to sell 3% of Eni, an oil-and-gas...

from The Economist: Business http://ift.tt/1pWGlNn