Italy's state railways to spin off high-speed network but retain control, says CEO
2024-12-12
Category: economic

Italy's state-owned railways Ferrovie dello Stato (FS) will spin off its high-speed network into a dedicated company over which it will retain full control, the group's chief executive said on Thursday.
"Privatising or chopping up the FS group is not my plan," CEO Stefano Donnarumma said at the presentation of the company's 2025-2029 strategy. 
The move could however pave the way for the sale of a stake in the unit at a later stage as Rome plans state asset sales to cut its mammoth public debt.
Donnarumma added that "we cannot talk about a privatisation" even if outside investors were to decide to help finance the newly-created unit.  
Prime Minister Giorgia Meloni's government last year planned to raise some 20 billion euros over three years through the sale of state assets, but Rome's latest budget framework appeared to scale back these efforts. 
For FS, the government would need to take specific regulatory and legislative steps to fully disclose the group's assets and allow investor assessment before selling off part of the company.
Though pushing back on the idea that his group was heading towards a privatisation, Donnarumma however said that FS would adopt a new financing model for new investments based on the RAB, or regulated asset base, usually used to calculate revenue in regulated businesses and for sell-offs.