Italy may accelerate the planned sale of a stake in Banca Monte dei Paschi di Siena SpA to boost cash inflows as growth slows, according to Foreign Minister Antonio Tajani.
“Italy might decide on Monte Paschi in the short term,” Tajani, who is also the deputy prime minister, told Francine Lacqua in an interview with Bloomberg Television in Cernobbio, Italy.
Prime Minsiter Giorgia Meloni’s government has been evaluating the disposal of some assets as a way to allow Italy’s far-right coalition to fund new spending without adding to the country’s mammoth debt load. The move, however, move could set off alarm bells with European Union regulators and in financial markets.
With the economy faltering after unexpectedly contracting in the second quarter, the government is confronting the prospect that it could potentially overshoot its deficit targets of 4.5% this year and 3.7% in 2024.
