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Italy: Partial Privatisations Would Reduce Debt-to-GDP Only at the Margin; Deeper Reforms Required

The list of companies potentially involved in the latest privatisation plans targeting EUR 20bn in proceeds includes some that provide important public services such as Poste Italiane (rated by Scope Ratings BBB+/Stable). The Italian universal postal provider also operates the country’s largest network for distribution, insurance and financial services.

The government, through the Ministry of Economy and Finance, directly holds 29.3% of Poste’s capital, in addition to 35% owned indirectly through Cassa Depositi e Prestiti (CDP, rated by Scope BBB+/Stable), with the remaining 35.7% in free float. At the end of January, the government approved a decree to sell part of Poste’s state-owned capital.

While the state would retain control directly or indirectly through its combined stake via CDP, it would also forego a share of its future dividend income, worth almost EUR 250m in 2022, which it has usually reinvested to support economic development and infrastructure…
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