9 August 2006

Public utilities

The Autostrade affair has opened (re-opened?) a debate about public utilities in Italy. A very important debate that I hope will bring clarity and above all, advantages to Italian citizens who benefit from the services. Privatisation of the utilities must come about in a context in which a de facto private monopoly is not created. In which the development of the market is guaranteed, in which there is a reference framework that protects the users and finally one where there is a controlling Authority with real powers to impose sanctions.
It seems to me that this is not what has been happening in Italy in the last few years. In fact the private monopolies that were previously public have become weaker financially without bringing any particular benefits to the country. This is a situation that has come about through the use of debts in the acquisition of the companies that belonged to the State.
If they are heavily in debt, the companies have objective difficulties in making investments and this is what has happened.
I am not against privatisation. I am not against the market. The opposite is in fact true. But the handing over to private companies of public utilities cannot be reduced to pure economics. When the economy of the country depends on the public utilities, it’s not enough that the dividends of the controlling group are the predominant feature. The industrial and economic development of Italy is conditioned by the public utilities. They must be efficient and competitive while respecting the market, the citizens and the companies.

Posted by Antonio Di Pietro in Economy