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Sunday July 6, 2008
Reuters
Berlusconi Threatens To Re-Nationalize Alitalia

Italian prime minister-elect Silvio Berlusconi threatened on Tuesday to re-nationalize Alitalia if the European Commission continued to "whine" about a government loan to keep the ailing airline afloat.

The European Commission is examining the EUR300 million euro (USD$467 million) loan to see whether it breaks European rules barring further state aid to the airline, prompting Berlusconi to criticize the EU for creating rather than solving problems.

The tycoon said a bid by a group of Italian businessmen remained the first choice for saving the carrier, but that the state or its railways could buy the 50.1 percent of Alitalia that it does not already own if needed.

"If they continue whining, we could take a decision in which Alitalia could be bought by the state, by the state railways," Berlusconi said. "It's a threat, not a decision."

EU Transport Commissioner Jacques Barrot said at the weekend that the EU was not trying to create problems but simply trying to enforce the rules, failing which the courts would.

Berlusconi has promoted the prospect of an Italian consortium for Alitalia with vigour since the collapse of its sale to Air France-KLM earlier this month, but so far no big names have emerged with concrete plans to save the airline.

The chairman of Italian company Pirelli said on Tuesday he was willing to invest a "chip" of a few million euros in Alitalia if there was a clear and transparent plan to relaunch the airline, saying Milan's Malpensa Airport should not be shut.

An Intesa Sanpaolo executive said the bank was still waiting for "someone to come up with ideas" before making a move.

Berlusconi told his party's members of parliament on Monday that more businesses than needed were ready to participate in the consortium, one of those present at the briefing said.

A Rome-based law firm that says it represents the proposed consortium is expected to meet Alitalia's nine unions on Wednesday, a union official said.

(Reuters)

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