Overwhelmed by debt, Italy sells stake in Post Office ‘crown jewel’

Italian Prime Minister Giorgia Meloni once declared Italy’s postal service a “crown jewel” that must stay in state hands, but she is now selling a stake as part of a privatization program to tackle a huge public debt.

Meloni’s hard-right government aims to raise €20 billion ($21.6 billion) by 2026 by selling off a stake in Poste Italiane, which turns big profits through its insurance and banking operations, as well as stakes in rail company Ferrovie dello Stato and energy giant Eni.

Analysts, however, say that the sales will likely do little to reduce a debt mountain that exceeds €2.8 trillion ($3 trillion) — the second highest in the eurozone as a proportion of gross domestic product.