Istalia

[XanderOne]

The Government presents its Privatization Program

After the concessions to D&L and the Liberal Republicans, the state's disengagement program takes on historic proportions: total liberalization of transportation, the sale of IMERIN assets, and the market's leading role even in strategic sectors

The major assets controlled and partecipated by the State

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January 5661

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ROMULA - In an announcement that marks a radical shift in the country's economic policy, the Giunio government has officially launched another long-anticipated measure: the new program for the privatization of state assets. The result of lengthy negotiations between the Hosian Democrat Union, Democracy & Freedom, and the Liberal Republicans, the plan has finally been officially approved by the State Council, which will soon be presented to Parliament.

The program, which has been presented as "necessary to modernize and make the Istalian production system more competitive", will involve the state's gradual but decisive exit from a wide range of sectors, many of which have so far been regulated or dominated by public participation, despite previous periods of liberalization.

The new program goes far beyond previous reforms: in addition to providing for the sale of state shares in numerous publicly held companies, it includes the full privatization of giants such as ISTAMAR, the national maritime transport giant, and Istalian Airways, the national flag carrier. Both companies, despite operating in a competitive environment for years, continued to enjoy favorable positions, often enshrined in regulations granting them special rights and preferential access to strategic routes and terminals.

Equally significant is the decision to completely liberalize the railway sector, which until now has remained one of the last bastions of public regulation in the transport sector. The lines will be opened to new operators, both domestic and foreign, and the government has committed to ensuring equal access and competition. This will represent a genuine unbundling of the railway system, with the introduction of public tenders for the management of routes, the railway infrastructure remaining in state hands, and the progressive elimination of subsidies to publicly controlled companies.

But the heart of the privatization program revolves around IMERIN, the Imperial Authority for National Reconstruction, the historic institution established in the postwar period as a special reconstruction agency, later transformed into a state holding company with ramifications in nearly every sector of the economy, from energy to heavy engineering, from telecommunications to ports. Currently, IMERIN directly or indirectly controls nearly 20% of the national economy and is considered the most influential public player in the Istalian productive system. The government's plan calls for the progressive privatization of a myriad of IMERIN-controlled companies, many of which remain leaders in their respective sectors despite the long-standing market entry of private competitors.

The operation will be conducted in several phases and accompanied by a revision of the Authoritiy's bylaws, intended to transform it into a more streamlined public company, with functions focused on managing the strategic assets remaining under state control, particularly in the defense, strategic resources and energy sectors. Far from being liquidated, IMERIN will maintain a central role in areas considered vital to the country's national security and industrial sovereignty, while gradually divesting holdings and activities deemed no longer essential.

Minister of National Industry and Trade Fiorello Mazzini (D&L) commented on the reform to the press:

It's time to let competition and innovation drive growth. The state must now focus on its essential functions, without stifling sectors that can thrive thanks to private initiative.

The plan, which will be implemented in stages over the next two years, has already sparked mixed reactions within the political and trade union community. Reactions from the opposition to the program have been harsh, with the Socialist Democratics, Greens, and New Communists staunchly opposing the privatization plan, denouncing what they call a "sell-out of the state" and a direct attack on the Istalian social model.

The PSD, through its Congressional Group Leader, Natalia Parisi, defined the reform as follows:

An ideological choice, born of pressure from the economic right, which risks creating serious imbalances in the medium and long term. Instead of strengthening public presence in strategic sectors and promoting social enterprise, the government is giving in to the myth of the omnipotent market.

The Social Democrats also questioned the transparency and economic viability of the operation:

It's not at all certain that the market will guarantee better services or working conditions. Without strong rules and public guarantees, these privatizations only risk generating rents and new private monopolies.

The Greens, while recognizing the need to modernize the production system, condemned the government's unregulated and ideological approach and also criticized the lack of an environmental and social impact assessment of the divestment process. Newly elected party National Secretary Eva Santoboni told the press:

We are facing a veritable divestment of the public sector's ability to direct the economy, which, in the name of outdated liberalism, abandons any ambition to guide ecological, social, and sustainable development.

The most scathing comment, as expected, came from the New Communists, who lashed out at the plan, calling it "a declaration of war on Istalian workers". In a harsh statement, the party declared:

Tens of thousands of jobs are at risk, employees' rights will be curtailed, and entire communities will lose all means of democratic control over key sectors of economic life.

As stated by the party's Secretary General, Marcella Bigazzi:

This is a return to the dark years of uncontrolled privatizations, which in the past meant cuts, job insecurity, and inequality. Look at what is producing the reckless policy of the liberals in Rildanor. Measures touted as the panacea for all problems, they have only worsened the crisis in the country, further plumbing the country in the chaos. The government will listen to our voices and those of the unions and should expect the massive mobilizations already seen in recent years, united to protest against a class-based maneuver that benefited capital and the economic elite.

On the union front, however, reactions have not been as forceful as many had expected. The CISU (Istalian Confederation of United Unions) has strongly condemned the privatization plan, calling it "a frontal attack on the role of the state and the dignity of labor", and has promised "barricades in every sector involved". However, the CISU has also harshly criticized the country's other two largest unions, the UGL (General Labor Union) and the SNSM (National Mining Sector Union), accusing them of failing to show the solidarity the situation required. The UGL, close to the Hosian Democrat Union, has reportedly been reassured by the party's political mediation role within the government, while the SNSM has reportedly maintained a position too low, confident in the knowledge that the mining sector, considered likely the most strategic of the entire national economic system, will not be affected by privatizations. According to the CISU, this internal division within the union front risks weakening the workers' collective response in a crucial moment. Many analysts do not rule out the possibility of Giunio's meticulous work behind the scenes. The government, however, aims to reassure social stakeholders, promising protection measures for workers affected by the divestment processes and plans to reinvest the proceeds in infrastructure, technological innovation, and essential public services.

For the government, this is a decisive step toward a more open, flexible, and investor-friendly vision of the economy, aiming to definitively break with past economic models and further boost Istalia's competitiveness on the international stage. For Giunio, this is a moment of rare harmony within his third government and another successful move, especially in his successful division of the unions.