Reuters Insider - Italy weighs cost of bridge response
17/08/2018 15:15
Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=0_3if2vv91&referenceId=tag:reuters.com,2018:newsml_OV8TKTA4R_930&pageId=ReutersNews Source: Reuters Insider Description: Italy's government has opened an investigation into the country's biggest toll-road operator, hours after saying it could face a heavy fine or lose its concession over a bridge collapse that killed at least 38 people. Ivor Bennett reports. Short Link: https://reut.rs/2BeieK5 Video Transcript: As the hunt for the missing continues, so do the recrimination. Italy's government launching an investigation into the company responsible for the upkeep of the bridge, demanding it rebuilds the structure and the area around it at its own expense. br/ br/ Thanks to our world-beating technological knowhow- br/ br/ Autostrade per l'Italia is part of the Atlantia Group, whose shares closed down 22% yesterday on talk of renationalizing the motorways. But as the cost of such a move becomes clear, that talk appears to be waning, enough even for the company's shares to rebound 6%. br/ br/ I think there was a massive overreaction and inappropriate response to the crisis in Italy. And simply say, "Let's cash it, let's nationalize it," was a monstrous error of both political judgment and likely very damaging to Italy's economy and infrastructure. br/ br/ Withdrawing Autostrade's concession could involve a long legal fight with the government at risk of being ordered to pay the company compensation. A fine, therefore, may be more likely. But whoever shoulders the cost of this crisis, Italy's new coalition has made clear EU budget rules will not be a constraint. br/ br/ Italy is on a collision course with the Maastricht conditions for budgetary restraint, because it clearly wants to be able to use fiscal policy to expand its economic activity. Monetary policy clearly has not been sufficient to drive Italian economic growth. br/ br/ According to a source, Autostrade and Atlantia will hold board meetings next week. But management changes are not expected. A state funeral for the victims will be held in Genoa on Saturday. But as the grief of relatives inevitably turns to anger, the government will be expected to do a lot more than that