Angry, yes. But anti-business? Italy likely to contain its bridge rage

ROME: Italy’s government has unnerved investors with its angry reaction to this week’s deadly bridge collapse, threatening to renationalise toll roads and accusing its predecessors of being in thrall to big business.

But as the new anti- establishment government barks at the private sector, and at motorway operator Autostrade per l’Italia in particular, sources close to the government said it would not bite, at least not so hard as to frighten off investment.

Even delivering on the prime minister’s threat to revoke Autostrade’s nationwide concession could be unaffordable for the heavily indebted state.

It may settle for a heavy fine instead, two government sources said.

Assuming Rome emerged victorious from appeals Autostrade could lodge in the courts, it would have to pay between 15 and 20 billion euros ( US$ 17US$ 23 billion) to compensate the company for investments in the motorway network, sector experts told Reuters.

“The government will certainly take action against the concession holder,” Deputy Transport Minister Edoardo Rixi told Reuters.

“We don’t need to wait for investigations because it has objective responsibility for underestimating the risk.”

However Rixi, from the rightwing League party, added that the action will not necessarily be revoking the concession.

It could be a fine, or only withdrawing the concession for the single motorway that collapsed, he said.

The government has kept investors on edge since it took office in June, seeking to rewrite a contract to sell a major steel plant and sometimes speaking out against large infrastructure projects already under way. — Reuters