The proposed sale is an important part of the Italian government’s privatization objectives. “The privatization we are most concerned about is ITA,” Giorgetti said. “The fact that it has stalled is not the fault of the Italian government.”
Lufthansa initially wants to acquire 41 percent of ITA from the Italian state, with an option to acquire the rest later. However, the sale has met with objections from the European Commission, because it would harm competition on various short- and long-distance routes to and from Italy. The Commission has until June 6 to make a decision. Lufthansa may have to make concessions, such as handing over slots, in order for the takeover to go ahead.
The privatization is part of a broader government plan to sell around €20 billion worth of state holdings by 2026 to ease Italy’s massive debt burden.
