ROME
Italy's cabinet approved plans to sell up to 40 percent of the Italian post office, Poste Italiane, and a 49 percent stake in air traffic service provider ENAV, as the government tries to bring down its huge public debt.
After the cabinet meeting, Prime Minister Enrico Letta said the Italian government approved the plan, paving the way for the partial privatization of these institutions, adding; "I hope we can complete the sale before the summer."
Government officials estimated that the entire post office had a value of between €10-€12 billion and could rise to between US$4-US$4.8 billion from the sale of 40 percent of the post office.
The government expects to raise €1 billion from the privatization of 49 percent of air traffic service provider, ENAV.
Both ENAV and the Poste Italiane are currently fully state-owned.
The country's debt is 132.9 percent of Gross Domestic Product (GDP) – the second highest in EU after Greece.
The Italian government is under pressure to take fast action to cut debt and boost the country´s economy.
According to the World Bank, Italy was the ninth-largest economy in the world in 2012, the fourth-largest in Europe.
englishnews@aa.com.tr
