Privatization: sale of state shares for 20 billion Strategies and debts - a 30-year journey

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Candidate Georgia Meloni did not mention the word "privatization" in her program. The word is also absent from the programs of its allies, including Forza Italia, and from the government's keynote address to Parliament. Private ownership is often associated with the sale of public assets and poor services, making it unpopular with the public. However, in the past, Matteo Renzi has used the topic to attack Prime Minister Enrico Letta, who announced a privatization plan. Renzi said privatizations should be done on the basis of clear objectives, such as welfare or employment growth. However, it is not known whether Renzi has actually been able to increase employment. He has demonstrated a clear vision and the time to implement his ideas.

In contrast to previous governments that privatized public assets to reduce debt, the Meloni government is revisiting the practice. In the 1990s, privatizations became necessary because of the high level of indebtedness of state-owned companies and the government. The sale of state-owned enterprises raised about 200 billion euros over 15 years. Privatizations began in 1993 with the sale of Nuovo Pignone and Sme, followed by the record years of 1996 and 1997, when €9.3 billion and €19.6 billion worth of assets were sold, respectively. In 1998, 48.4 billion euros were raised, including the sale of significant stakes in Eni and Bnl.

Once the 2000s began, however, the situation changed.

Globally, privatizations were down 30%, and Italy had a Berlusconi government that often refused to privatize. However, some selling continued, including shares in Snam, Bnl, Asm Brescia, Fiera di Milano and others. In 2004, Economy Minister Chuseppe Tremonti claimed that Italy had made one-third of all privatizations in the world. At the same time, some accused him of stock manipulation and real estate sales.

In the following years, privatizations were less relevant and Monti's government sold 10 billion euros worth of assets in 2013 to avoid the infraction procedure. The Letta government failed to implement its privatization plans due to its short term in office. Renzi's government sold shares in Enel, RaiWay, Ansaldo Energia, Fincantieri, Cdp Reti and Enav. Gentiloni's government had planned to sell shares in Eni and Enav, but eventually abandoned the idea. The Conte I government planned to raise 18 billion euros, but got almost nothing. The Gualtieri government is focusing on real estate sales.

The Meloni government and Minister Giorghetti plan to privatize to the tune of 20 billion euros. However, the Financial Times doubts that they are willing to give up large state-owned companies. Perhaps they will focus on selling lighter assets such as the 41% stake in Ita Airways and the 64% stake in Monte dei Paschi. Nevertheless, it will be difficult to reach the €20 billion target in three years, given previous experience.