Italian Government to Revise Privatization Target Downward

The Italian government is set to revise downward its privatization target in the budget planning document that the cabinet is expected to discuss April 11.

Italy targets stake sales amounting to “0.3 percent to 0.4 percent of output for 2017 and for the following years," Deputy Finance Minister Enrico Morando said in an interview at the Ambrosetti Workshop in Cernobbio, Italy. That is less than the 0.5 percent previously planned for 2017 and 2018.

Italy last year failed to meet privatization targets it said were key to reducing a public debt that stands at 2.25 trillion euros ($2.4 trillion), or more than 130 percent of the country’s gross domestic product. The Treasury failed to make good on commitments to sell a stake in the national railway as well as a second tranche of Poste Italiane SpA, the postal company that is also one of the country’s main insurance and financial operators.

Morando said that, in addition to Poste and Ferrovie dello Stato SpA, the government may also consider selling further tranches in Enel SpA and Eni SpA. Asked about the revision at a press briefing in Malta, Italian Finance Minister Pier Carlo Padoan said the figures will be made public after their approval.

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