The Italian government of Prime Minister Mario Monti on Friday said it approved measures that will allow it to sell initially some 10 billion euros ($12.6 billion) of public assets in about a month to slash the country's public debt.
The Italian government of Prime Minister Mario Monti on Friday said it
approved measures that will allow it to sell initially some 10 billion euros
($12.6 billion) of public assets in about a month to slash the country's public
debt.
"We will reduce the state's assets, firstly with a quick sale of [three
government agencies] SACE, Simest and Fintecna worth EUR10 billion to
[state-controlled lender] CDP," said Deputy Economy Minister Vittorio
Grilli at a press conference in
Rome
following a cabinet meeting.
SACE is a credit export agency, Simest is an entity that promotes foreign
expansion by companies, and Fintecna deals with state-asset management.
Mr. Grilli ruled out any plans at present to sell the treasury's remaining
controlling stakes in key companies Eni SpA (E), Enel SpA (ENEL.MI) and
Finmeccanica SpA (FNC.MI).
The government also approved a decree targeting measures to promote growth
after a series of tax-laden austerity packages crippled domestic demand and
consumer confidence hit a record low.
"These measures will free up funds worth between EUR30 billion and EUR35
billion in new resources," said Industry Minister Corrado Passera.
Italy
,
which must service a public debt of more than EUR1.9 trillion, or 120% of gross
domestic product, is facing a sharp economic contraction. The government
estimates gross domestic product will shrink 1.2% this year, while the European
Commission and the International Monetary Fund, among others, see a bigger
decline.
Friday's measures approved by the cabinet are "robust," said Premier
Monti at the same press conference.
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