By Christopher Emsden
ROME--Italy's government on Thursday approved plans to sell up
to 12 billion euros ($16.13 billion) in business assets in a bid to
overcome objections from Brussels and gain the right to make extra
public investments in 2014.
The Treasury will sell a 3% stake in oil giant Eni SpA (E) as
well as larger stakes in unlisted companies, including shipbuilder
Fincantieri SpA, Prime Minister Enrico Letta said after a cabinet
meeting.
The Eni stake, which alone should raise EUR2 billion, will be
part of a complex buyback operation that will keep the Italian
state's controlling grip on the company at around 30%, he said.
Also on the block is SACE, a bank offering trade credits to
explorers, as such export-import banks tend to be mostly privately
owned abroad, Mr. Letta said.
Other planned sales are a stake in CDP Reti, a holding company
owned by Cassa Depositi e Prestiti that has large holdings in
companies such as power grid operator Terna SpA (TRN.MI), the
premier added.
The proceeds will allow Italy to lower its public debt ratio in
2014, thus unblocking a problem that had led the European
Commission to rule against Italy's use of the European Union's
so-called "investment clause," which allows governments to
calculate some productive investments outside of the annual budget
parameters.
That should free up at least EUR3 billion in funds next
year.
Economy Minister Fabrizio Saccomanni signaled he was fairly
certain the new plan would win the EU's approval. He will present
the plan to officials at the Eurogroup meeting in Brussels on
Friday.
Mr. Letta also said the cabinet was poised to cancel an
unpopular tax on primary residences, fulfilling one of the core
pledges his coalition government has made. That will require EUR2.4
billion in offsetting revenue to keep this year's budget on
track.
The government will formalize that next Tuesday, as well as
outlining its decision to allow banks to revalue upwards their
shares in the Bank of Italy, whose book value dates back to
1936.
--Write to Christopher Emsden at chris.emsden@wsj.com