🔺 What to do when markets are at an all-time high? Find smart bargains, like these.See Undervalued Shares

Italy's Di Maio says Atlantia must repay tolls to keep concession - paper

Published 06/07/2019, 22:18
© Reuters. FILE PHOTO: 5 Star leader and Deputy PM Di Maio presents EU election program
ATL
-
META
-

MILAN (Reuters) - Deputy Italian Prime Minister Luigi Di Maio said infrastructure group Atlantia (MI:ATL) should repay excessively high tolls earned in recent years from its motorway concession if it wanted to keep the contract, a newspaper reported on Saturday.

Di Maio's 5-Star Movement has been threatening to revoke the contract under which the Italian company runs the nation's largest motorway network after a bridge operated by the group collapsed last August killing 43 people.

But party sources have told Reuters the 5-Star Movement would be prepared to accept a compromise if Atlantia yields to a number of demands including sizeable cuts to road tariffs.

"Our goal is the revocation of the contract," Di Maio was quoted as saying in an interview with Corriere della Sera daily.

"In order to convince us not to go ahead with that, Italians must get back all that's being taken away from them in recent years due to increases in toll roads, and a lot more," he added.

Motorway tolls in Italy are among the highest in Europe and are a sensitive issue in a country that also has one of the highest car-ownership rates in the continent.

Di Maio also posted a video on his Facebook (NASDAQ:FB) page on Saturday on the bridge collapse, saying the cost of toll roads in Italy had risen by 30% over 10 years and Atlantia's motorway unit had earned 10 billion euros since Italy privatised the road network in 1999.

Atlantia's motorway unit Autostrade per l'Italia said the video contained "incorrect information".

In a statement, Autostrade did not reference the revenue figure quoted by Di Maio but said it had spent 5.2 billion euros in network maintenance since 1999, a sum it said was more than envisaged by the concession agreement and more than the state had spent prior to the privatisation.

The 5-Star's attacks against Atlantia have spread alarm in Italy's corporate world and opened a rift with coalition partner the League, whose voter base traditionally includes small business owners.

"I'm note quite sure where the League stands in this match," Di Maio told Corriere. "But I'm sure it won't renege on what was said immediately after the tragedy happened."

On Aug. 14, 2018, a concrete bridge on the A10 motorway linking the port of Genoa to France gave way during heavy rains, plunging cars into the river bed below.

© Reuters. FILE PHOTO: 5 Star leader and Deputy PM Di Maio presents EU election program

A highway tariff cut would give immediate financial benefit to Italians and might also help the flagging popularity of 5-Star, which won a March 2018 national election but was easily overtaken by the League in May's European parliamentary ballot.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.