Italy eyes privatisation sales to bolster state finances 

Government said last September it wanted to raise proceeds from privatisation deals worth "at least" 1% of GDP

Italy plans to sell state asset sales valued at close to 1% of GDP to keep its fragile state finances in check, indicating it could have diluted previously announced plans.

Italy plans to sell state asset sales valued at close to 1% of GDP to keep its fragile state finances in check, indicating it could have diluted previously announced plans.

Italy had said last September it wanted to raise proceeds from privatisation deals worth "at least" 1% of GDP, or some €20bn in absolute terms, over the three-year period 2024-2026.

The treasury's Document of Economy and Finance has now indicated new debt projections through 2027 factored in asset sales "with a cumulative value close to 1% of GDP". 

A table in the document detailing the drivers of the debt-to-GDP ratio indicates that Italy aims to raise privatisation proceeds in 2025, in 2026, and in 2027.

A cumulative 0.7% of GDP would amount to roughly €16bn when assuming the Treasury's estimate for gross domestic product over the period.

The Treasury declined to provide further details when asked to comment.

Italy's public debt, the second largest in the eurozone as a proportion of output and under close scrutiny from rating agencies and markets, is forecast to rise to almost 140% of GDP in 2026 from 137.3% in 2023 before declining marginally to 139.6% the following year, according to the latest projections. 

Reuters