Italy's massive public debt and increasing refinancing challenges are forcing the nation to augment Berlusconi's proposed adjustments. It is doubtful whether Italy can reach its savings objective of 54 billion euros with this packet alone.
It would be best if Italy complements its fiscal adjustment plan with a series of privatizations that could yield earnings of 12 billion additional euros. Selling interest in the multinational oil and gas company Eni, the electric company Enel, the aeronautic holding Finmeccanica and the tech company Ansaldo would provide a significant boost.
Taking these steps would help to free up markets, resulting in a successful, positive sale of public monopolies.
