Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Italy PM vows not to nationalise firms as EU head demands unity

Published 02/04/2020, 09:46
Updated 02/04/2020, 09:50
© Reuters. FILE PHOTO: Italian PM Conte addresses Senate on coronavirus disease (COVID-19), in Rome
IT40
-

MILAN (Reuters) - Italian Prime Minister Giuseppe Conte said Rome would not nationalise businesses during the coronavirus crisis on Thursday as the European Commission's head promised affected countries up to 100 billion euros (88.81 billion pounds), starting with Italy.

Conte's pledge in an interview with Il Fatto Quotidiano newspaper reflects concerns in his ruling coalition government that investors could try to take advantage of collapsing share prices to snap up assets such as banks or insurers.

Rome has the option of using "golden powers" which give the government the right to veto stake building in strategic industries and Conte reiterated he would use such instruments, which should also "be strengthened at the European level".

At the moment the golden powers apply to companies in the infrastructure, defence, energy and telecoms industries, but Rome is considering extending them to other sectors.

Meanwhile, European Commission head Ursula von der Leyen, in a separate letter to daily la Repubblica, called for more solidarity at the EU level to fight the health crisis.

And she added that the EU would allocate up to 100 billion euros (88.81 billion pounds) to the hardest hit countries, starting with Italy, to cover wage cuts and to help preserve jobs, she added.

The EU executive proposed the wage-subsidy scheme on Wednesday, but did not give financial details.

Conte said he felt "the wind was changing" and called on Germany and the Netherlands, which have so far blocked calls from Italy, Spain and France for joint debt to help finance a recovery, to "think with a European perspective".

Von der Leyen said too many countries had focused on their own problems in the initial days of the coronavirus emergency, which "was harmful and could have been avoided".

Italy, the epicentre of the coronavirus emergency in Europe, was the first Western country to introduce sweeping bans on movement and economic activity, having first confirmed the presence of coronavirus almost six weeks ago.

Since Feb. 23, when Rome imposed the first set of measures to contain the outbreak, Milan's blue chip index (FTMIB) has fallen more than 30% and the lockdown, which will be extended until at least April 13, has brought the economy on its knees.

Conte added that he would like a planned second emergency decree that will include additional measures to mitigate the impact of the health crisis on Italy's economy to be passed before the Easter holiday in mid-April.

Von der Leyen said the European Commission had also proposed that "every euro still available in the EU's annual budget" be spent on tackling the coronavirus crisis.

© Reuters. FILE PHOTO: Italian PM Conte addresses Senate on coronavirus disease (COVID-19), in Rome

"Only solidarity will allow us to emerge from this crisis," she said. "The distance between European nations ... puts everyone at risk".

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.