Italian Prime Minister Giuseppe Conte. Picture: REUTERS/LUDOVIC MARIN
The present coalition government of the left-of-centre Democratic Party and the populist Five Star Movement has put a stop to all that. Last week it unveiled the new board of Alitalia, the chronically unprofitable airline, and will spend €3bn nationalising it. Meanwhile, Cassa Depositi e Prestiti , Itay’s state lender, has acquired a 7.3% stake in Euronext as part of the latter’s takeover of exchange operator Borsa Italiana.
This sharp change in direction is only partly a response to the pandemic. Prime Minister Giuseppe Conte’s economic adviser is University College professor Mariana Mazzucato, a long-time supporter of government intervention. Five Star has advocated the nationalisation of banks, utilities and other public infrastructure since its creation in 2009. The Democrats have followed suit, abandoning the reformist instincts of former party leader Matteo Renzi.
Rome hopes its new round of nationalisations, allied with new EU pandemic funds, will spur public investment after a decade of contraction. It believes a long-term investor such as the state or the CDP will force companies to pursue broader objectives such as fighting climate change, rather than simply rewarding shareholders.
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