Italy’s Finances on the Verge of Collapse, Offers Government Buildings as Collateral for New Loans

COVID19 RESPONSE PLATFORM – As a direct result of the government’s COVID-19 lockdown, Italy is already forced to take drastic financial measures in attempts to save the nation. All of this while we are not even two months into the new crisis.

Italy’s case will likely be a new template that other national governments will have to resort to as well, as they too have imposed much too strict counter measures in response to the COVID-19 pandemic.

Since the 2008 global Heist, Italy has experienced one financial or economic dip after another. This crisis may be the last dip for the Italian people before their nation goes bankrupt completely.

 

The following article was published by Deutsche Wirtschafts Nachrichten, a website owned by Bonnier AB, and translated with Google:

Is the sale now coming? Italy plans to pledge all state property against loans

Luigi Zanda, leader of the Democratic Party (PD) in the Italian Senate and PD Treasurer, said in an interview with La Repubblica newspaper that the government in Rome was ready to “mortgage the palaces of power”. Talks with Prime Minister Guiseppe Conte have also been held. Zanda: “If Europe doesn’t help us, we will do it alone,” said Prime Minister Conte. “However, since loans are never without guarantees, to meet our extraordinary needs without detonating public debt, we could deposit state-owned real estate as security ”.

The guarantees should include the buildings that house state institutions, ministries, theaters and museums – including the Palazzo Montecitorio, where the Chamber of Deputies of the Italian Parliament is located, and the Palazzo Chigi, where the Prime Minister is based, reports Agenzia Italia.

Zanda emphasizes that it is not about selling state real estate. It is about guarantees that the state can go into debt. The value of these properties is around 60 billion euros. If you add the rest of the property from the local authorities, it would be worth 300 billion euros, says Zanda.

Added to this are the country’s ports and airports, which can be given as guarantees or even leased. Lega Nord chief Matteo Salvini protested this plan. He shared on Twitter. “The PD wants to sell the state’s jewels to get help from Europe, including ports, airports, and beaches. Unfortunately, it is not a joke “.

Salvini had previously described the EU as a “cave of snakes and jackals”.

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