PM Giorgia Meloni’s Plan to Tackle Italy’s Debt

Italy’s Prime Minister Giorgia Meloni is shaking up the country’s economic playbook with a bold move to tackle its massive debt problem. Meloni, who once opposed selling off state assets, is now leading the charge to privatize key national entities like Poste Italiane, Ferrovie dello Stato, and Eni. This shift is expected to bring in 20 billion euros ($21.6 billion) by 2026, offering hope for Italy’s financial future.

Meloni insists this isn’t like past privatization efforts, where control slipped away from the public. She’s promised to keep a close eye on things, even as the government sells off parts of these valuable assets. However, critics, like Andrea Orlando from the Democrat Party, worry that selling stakes in these companies could hurt Italy’s long-term interests.

Even though Meloni once pledged to keep Poste Italiane in Italian hands, she’s now open to foreign investors buying into it. This change has raised eyebrows, especially since it’s a big departure from her previous stance.

While selling off parts of these companies might bring in some cash, there are concerns about what it means for Italy’s control over them and the money they bring in. The plan to reduce the government’s stake in Poste Italiane from 51% to as low as 35% has sparked debate about whether it’s the right move.

This push to privatize is part of a larger effort to stabilise Italy’s finances. But experts aren’t sure if it’ll be enough to make a big dent in Italy’s massive debt, which is second only to Greece in the eurozone.

As Italy moves forward with this new economic strategy, all eyes are on Prime Minister Meloni to see if her plan will bring the stability and growth the country needs.