Sources says Giuseppe Conte meeting with allies fails to break Atlantia deadlock

0
228
Sources says Giuseppe Conte meeting with allies fails to break Atlantia deadlock
Sources says Giuseppe Conte meeting with allies fails to break Atlantia deadlock :File Photo

Sources says meeting between Italy’s Prime Minister and coalition allies to try settle a row over Atlantia motorway business yielded no progress.

Fresh talks on the matter are expected soon, the two people added, without giving a precise date.

Italian Prime Minister is expected to comment on the matter after markets close on Wednesday, one of the sources said.

The ruling, anti-establishment 5-Star Movement pledged to strip Autostrade per l’Italia of its lucrative concession to run motorways after the deadly collapse of a bridge it operated.

The centre-left PD party, which governs with 5-Star, has been reluctant to deprive Autostrade of its concession, fearing it could lead to a large compensation claim against the state.

Coronavirus crisis left Italy’s northern economic powerhouse disaster zone

A resolution to the issue could clear the way for a 1.25 billion-euro ($1.37 billion) state-guaranteed loan which Autostrade has applied for to weather the coronavirus crisis.

The request for help during the virus pandemic triggered criticism last week from 5-Star members who are against the state guaranteeing funding to Atlantia, led by the Benetton family.

5-star wants either a revocation of the concession or Atlantia to reduce its 88% stake in Autostrade so that the Benetton family loses control of the motorway operator, a party source said.

The government would back an acquisition of a relevant stake in Autostrade by infrastructure fund F2i and state lender CDP, the government sources said.

Mafia in Italy poised to exploit coronavirus

However, a third source close to the matter said that CDP was unwilling to take a stake in Autostrade before the dispute with the government was settled.