Meloni emphasized that this privatization drive would be different from previous practices, ensuring public control while selling stakes in public companies. This approach marks a departure from her previous stance against the privatization of Poste Italiane, which she described as a crown jewel that should remain in Italian hands.
The decision to involve overseas investors in the divestment of the postal service signifies a change in Meloni’s position. However, critics from the opposition, such as Andrea Orlando from the centre-left Democrat Party, have strongly criticized the government’s intention to privatize government-owned properties.
While the privatization campaign aims to reduce Italy’s massive debt, which exceeds 2.8 trillion euros, analysts remain skeptical about its impact on the debt-to-GDP ratio. Nevertheless, Meloni’s strategy aims to retain state influence while attracting foreign investment.
As part of the ownership overhaul, the government plans to decrease its holding in Poste Italiane to as low as 35%, a significant drop from the initial 51% target. This decision has faced opposition, with critics accusing the government of betraying national interests.
Italy’s historical challenges in attracting foreign investors and achieving privatization targets pose additional obstacles. The country has a track record of missing privatization goals, with the annual proceeds averaging less than 0.1% of GDP. The government’s efforts to attract foreign investment and diversify ownership are further complicated by the complex financial landscape, including Poste Italiane’s extensive operations and recent involvement in tax credit frauds.Italy’s pursuit of balancing national control with economic exigencies in this high-stakes financial reshuffle carries political, economic, and social implications. The outcome of this bold privatization strategy remains uncertain, with the nation’s fiscal stability and sovereign integrity at stake.
