Italy wants to 
get 10 to 12 billion euros from the sale of its shares in eight state-owned companies to reduce the public debt and calm the fears in Brussels about the deficit and public debt.
The 10-12 billion euros will be obtained from these privatizations, which will be done in a year, and will be a first response to the demands of Brussels for 2014, explained Enrico Letta, in a press conference in Rome.
The decision will allow not only soothe European authorities on Italy’s budget deficit, which is under control, but also on the public debt which will start to decline for the first time in five years, said Letta.
Economy Minister Fabrizio Saccomani, announced that the state will give up 3% stake in petroleum company Eni, and will retain at least 30% of the shares. Following the announcement, Eni shares were up 0.5 % at the Milan Stock Exchange.
Half the sum of €12 billion will be used to reduce public debt and the rest for the recapitalization of the state-owned bank Cassa Depositi.
Other companies included in this first privatization plan, which will be followed by a second in the coming months are Fincantieri (shipyards), Grandi Stazioni (railways), StMicrolectronics (semiconductors), Enav (air traffic control), Sace (insurance), CDP Reti (a branch of the gas distribution company) and Tag (metallurgy).
Saccomani said that the government will sell 60% stake of Bags, 60% of Grandi Sazioni, 40% of Enav and 40% of Fincantieri.
The draft budget for 2014 foresees a budget deficit of 2.5% of GDP and a public debt level at 134% of GDP. Letta reiterated that, in order to achieve these objectives, Government preferred the way of sale of shares in state companies as opposed to new austerity measures.
Letta and French President Francois Hollande pledged Wednesday during a Franco-Italian summit held in Rome, for a Europe of growth and to make job creation a central theme of the European summit in December.
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