Italy's Rail Network Future: A High-Speed Spin-Off

Italy's state-owned railway, Ferrovie dello Stato, plans to spin off its high-speed network into a separate company to potentially sell stakes to investors. This move is part of efforts to reduce Italy's significant public debt, as the government aims to raise funds by selling state assets.

Italy's state-owned railway, Ferrovie dello Stato (FS), has announced its intentions to separate its high-speed network into a dedicated company. This strategic move aims to open opportunities for external investors, aligning with Prime Minister Giorgia Meloni's broader objective to sell state assets and tackle the nation's towering public debt.

FS Chief Executive Stefano Donnarumma indicated discussions with the government regarding attracting investments into the newly formed company, which FS will still control entirely. He clarified that there are no intentions to privatize FS entirely or dismantle it, even if external capital supports the new division.

A valuation of the high-speed business stands at 8 billion euros, underpinning the financial strategy. The larger objective is to increase FS's annual revenue substantially and maximize returns for private investors using a regulated asset base model, securing solid growth and investor interest leading into potential listings or sell-offs.

(With inputs from agencies.)