Italy

EU budget pact is ready for 21st century reboot

4 July 2019

Italy argues that EU fiscal rules elevate stability over growth. They are complex and don’t encourage productive investment. Removing funds spent on research or green energy from deficit goals could help. Yet Rome’s budget plans show politicians’ priorities often lie elsewhere.

Grand bargain can end Italian toll-road standoff

4 July 2019

The government in Rome reckons it can pull a lucrative motorway licence from Atlantia without paying compensation after last year’s fatal bridge collapse. The $21 billion infrastructure group would respond with a lengthy lawsuit. A better option for both sides is to reduce tolls.

Dixon: Bold PM can bring virtuous circle to Greece

3 July 2019

Liberal conservative Kyriakos Mitsotakis is expected to replace leftist Alexis Tsipras as prime minister after Sunday’s election. If he roots out the bad practices that have bedevilled Greece for decades, the country could finally enjoy an investment-led recovery.

The Exchange: Escaping carbon’s grip

25 June 2019

Saipem made its name building drills and pipelines for fossil-fuel giants like Saudi Aramco. CEO Stefano Cao visits Breakingviews to discuss how climate change is pushing the company into greener projects – and how tech challenges and a need to protect margins will drive M&A.

Cox: Not all Italians dislike the French, just 33%

21 June 2019

The feeling is not reciprocal. In the same Ipsos poll, only 6% of French respondents felt the same way about Italy. Given cultural and economic similarities, the two nations should arguably have the strongest bonds. Lopsided investment flows are one part of the problem.

Second front opens in Vivendi’s Italian campaign

19 June 2019

Silvio Berlusconi’s plan to create a 4 bln euro pan-EU broadcaster from Mediaset could mute the influence of its French media rival in the new group. Vincent Bolloré’s firm, which may also be diluted by Rome in Telecom Italia, is getting a taste of its own cooking in Italy.

Rome can get edge on Paris with network M&A

17 June 2019

Telecom Italia may buy rival network provider Open Fiber. A deal could revive its fortunes by taking out a competitor. And a valuation of over 2 bln euros would allow the government, a shareholder in both, to secure control of the telco, at the expense of French rival Vivendi.

Viewsroom: When dealmaking gets difficult

13 June 2019

Raytheon and United Technologies’ planned $114 bln tie-up raises questions about strategy, cost cuts and executive overreach. It’s prompted their shares to tank and activist Bill Ackman to oppose it. And Fiat Chrysler and Renault’s mooted merger has crashed. Can they salvage it?

What’s under Renault’s hood?

13 June 2019

Appraise the French carmaker's parts to decide whether Fiat Chrysler's merger offer was stingy or fair.

Fiat’s Renault offer was fairer than it looked

13 June 2019

Some investors complained a 15 bln euro merger proposal from the Italian-American group put a negative value on the French carmaker’s core business. Use more realistic valuations for Renault’s parts, though, and the price looks better. Reviving the deal also unlocks huge savings.

Renault-Nissan clash exposes flaws in Fiat deal

10 June 2019

The French carmaker has threatened to block its Japanese ally’s governance overhaul, while its state shareholder might sell. The contrasting manoeuvres may help revive a merger with Fiat Chrysler. But evidence of messy governance is more likely to put off a potential partner.

Italian mini-bond plan speeds Brussels showdown

10 June 2019

Leaders of the ruling coalition favour using small public bonds to clear a 53 bln euro state debt backlog. Creditors deserve to be paid. But issuing alternative debt – or turning the bonds into a parallel currency – will only accelerate a confrontation with the European Union.

EU’s debt warning to Italy is just opening salvo

5 June 2019

The European Commission says the country’s borrowing, which grew to 132% of GDP last year, could justify unprecedented sanctions. That move would need the support of EU governments, and Rome has some wiggle room. But political and economic signs point to a future showdown.

Fiat’s French appeasement game is means to an end

3 June 2019

Chairman John Elkann is mulling concessions to get the French state to greenlight the $35 bln Renault merger. A board seat for Paris and some cash shouldn’t risk planned cost savings, or Nissan’s assent. It’s a small price to pay for first-mover advantage in car consolidation.

Renault-Fiat merger savings matter more than price

31 May 2019

The French carmaker’s board may feel a proposal by its Italian-American rival takes advantage of a depressed share price. The bigger prize, though, is synergies worth 50% of combined operating profit. If those are credible, Renault should not quibble too much about valuation.

Viewsroom: A new game of carmaker matchmaker

30 May 2019

Fiat Chrysler spurned Peugeot by offering to merge with France’s Renault, which is itself joined to Nissan. How will the pairings play out, and what does it mean for the automotive sector? Plus: Why fossil-fuel giants like BP are painting themselves a pale shade of green.

Cox: Merger of equals is French expletive

30 May 2019

Fiat and Renault hope to succeed where other deals billed as partnerships failed to deliver on promises to France. From LafargeHolcim and Alcatel-Lucent to TechnipFMC and EssilorLuxottica, hopes have been dashed. Proving the exception requires an understanding of those failings.

Hostile markets will cap Salvini’s electoral yield

29 May 2019

Italy’s eurosceptic League party won big in EU elections. That may tempt leader Matteo Salvini to call a snap poll, ushering in a far-right executive. But a budget battle with the European Commission could rouse bond investors. And delaying may strengthen his hand with Brussels.

Berlusconis’ German TV raid looks opportunistic

29 May 2019

Mediaset, controlled by the former Italian prime minister’s family, snapped up 10% of Germany’s ProSieben. There’s a case for Europe’s media groups to combine to fight Netflix, but the move brings the Italians few real benefits. A cheap price is probably the main draw.

Car industry second-stringers lock arms to compete

26 May 2019

Renault and Fiat Chrysler are crafting an alliance that could let them cut costs, pool technology and better bargain with rivals. Even without merging, savings could be worth more than Renault’s 15 bln euro market value. Former Fiat boss Sergio Marchionne’s dream is coming true.