The Haizum Italian Insider Report is a monthly news service that monitors the most relevant issues in Italy. This document focuses on political, Economic, and Strategic matters, considering the role of Italy within the European Union, the MENA region, and Transatlantic Relations. The report will deliver clever insights by leveraging Haizum’s deep connections in the national institutional ecosystem.
Reading Time: 15 Minutes
Recent institutional and strategic developments in Italy reflect both challenges and progress across various sectors. Italy faces regulatory challenges as the European Commission initiated infringement procedures related to non-compliance on mobile workers’ family benefits, waste management, and banking directives. The Government has formally presented the Mattei Plan, a significant initiative aimed at promoting sustainable development in Africa. Italy has rebalanced its economic relations with China through a new three-year action plan aimed at boosting trade and investment.
In domestic governance, Italy has marked a milestone with the appointment of Daria Perrotta as the country’s first female General Accountant. Additionally, Raphael D’Onofrio is emerging as a leading candidate for the head of the legislative office at the Ministry of Economy. Italy’s defense sector is experiencing notable changes. Foreign Ministry has introduced a National Control List for dual-use goods to regulate the export of sensitive technologies., Leonardo and Rheinmetall have formed a joint venture to develop Italy’s defense capabilities and position in the European defense market. Defense Minister Guido Crosetto has emphasized Italy’s role in Mediterranean stability and its commitment to NATO, updating the Chambers on his attendance to the DC Summit.
At the national level, CDP’s financial performance for the first half of 2024 shows robust group’s investments and fundraising efforts, highlighting its role in supporting Italy’s economic infrastructure. Enel has achieved a 20% increase in profit for H1 2024, driven by a rise in ordinary EBITDA. ENI’s performance has exceeded expectations with a net profit of 3.1 billion for H1 2024. The company’s focus on reducing net debt and managing its portfolio is reflected in its share buyback program and strong financial position. Poste Italiane reported impressive financial results. The company’s growth in revenue and adjusted EBIT, coupled with its enhanced sustainability efforts, positions it well for continued success. TIM’s financial results for H1 2024 reveal a 4% increase in revenue. The reduction in net financial debt and Fibercop investment plan reflect focus on growth and operational efficiency.
Italy’s strategic developments illustrate a dynamic landscape of regulatory adaptations, international diplomacy, defense modernization, and economic leadership. These efforts are designed to address current challenges, enhance Italy’s global standing, and lay the groundwork for sustainable growth.
The European Commission has referred Italy to the EU Court of Justice for failing to respect the rights of mobile workers from other EU countries concerning family benefits. The issue pertains to the “Assegno Unico” (Universal Child Benefit), which excludes workers who have not resided in Italy for at least two years or whose children do not reside in Italy. The Commission has also initiated infringement procedures against Italy for incorrect transposition of the Waste Framework Directive (Directive 2008/98/EC, as amended by Directive (EU) 2018/851). Italy has failed to implement provisions on extended producer responsibility, high-quality recycling, separate collection of hazardous waste, and the establishment of a tracking system.
Italy, along with eight other EU member states, is facing infringement procedures for not fully transposing amendments to the Banking Resolution and Recovery Directive (BRRD, Directive 2014/59/EU). This failure impedes achieving necessary harmonization within the EU’s banking framework. Italy must respond within two months to rectify this issue. The Commission has identified non-compliance issues in several countries, including Italy, with the EU’s Single European Sky regulations regarding performance and charging schemes for air navigation services. Inadequate cost allocation and insufficient financial incentives for service providers were noted.
The “Strategic Italy-Africa Plan: Mattei Plan” was presented to the Italian Parliament. The 99-page document was assigned to various Senate committees, including Foreign Affairs, Defense, and European Policies. The Mattei Plan aims to address two main goals: combating human traffickers and providing African nations with alternatives for opportunity, employment, education, development, and sustainable growth. The Italian Government, led by Giorgia Meloni, seeks to shift the paradigm in Africa relations towards a partnership based on equality, avoiding both paternalistic and predatory approaches. The plan focuses on six areas: education/training, healthcare, water, agriculture, energy, and infrastructure (both physical and digital).
In its initial phase, the Mattei Plan will be supported by 5.5 bln of euro, including credits, grants, and guarantees. Approximately 3 bln will come from the Italian Climate Fund and 2.5 bln from development cooperation funds. Additional resources will include: Public development aid allocated by the Italian Foreign Ministry for bilateral cooperation. Sovereign concessional credit lines financed through the Development Cooperation Revolving Fund managed by Cassa Depositi e Prestiti. Funding from international financial institutions and multilateral development banks for prioritized African projects. Participation in EU programs like Global Gateway Africa-Europe, Connecting Europe Facility, Horizon Europe. Co-financing from other donor states, including the US. Emerging co-investment funds combining public and private resources.
It aligns with the G7’s Partnership for Global Infrastructure and Investment and the EU’s Global Gateway strategy for high-quality investment in infrastructure. The document outlines pilot projects in African countries.
Daria Perrotta is on track to be Italy’s first female General Accountant following the resignation of Biagio Mazzotta. Mazzotta will assume the presidency of Fincantieri, succeeding Claudio Graziano. Born in 1977, Perrotta will be the youngest General Accountant in history. Her career deviates from the traditional routes into this position, which have usually involved candidates from the Bank of Italy. Since 2020, she has served as a deputy public prosecutor at the Court of Auditors and has been a key associate of Giorgetti since the early 2000s, working with him at various roles including as president of the Budget Committee and later at Palazzo Chigi.
Raphael D’Onofrio is a leading candidate to head the legislative office at the Ministry of Economy. As the Deputy Chief of Staff, D’Onofrio is well-positioned for this promotion. D’Onofrio, a lawyer with a private sector background and aligned with the Lega, hails from Veneto and completed his education in Milan. His experience includes serving as Technical Secretary to the Undersecretary of Lombardy during Roberto Maroni’s tenure, working in Rome as Deputy Head of the Legislative Office at the Ministry of Agricultural Policies, and consulting at ISMEA and Invitalia. He later returned to the Ministry of Economic Development under Minister Giorgetti and had a brief tenure as Deputy Chief of Staff in the Campania Region before his appointment to the MEF.
Italy has introduced a National Control List for dual-use goods requiring individual authorization. This list mandates prior approval for the export, technical assistance, and brokerage of items such as integrated circuits, signal amplifiers, dry etching equipment, scanning electron microscopes, silicon, microprocessor-related materials, quantum computers, and their associated software and technologies. This measure was formalized by Deputy Foreign Minister Edmondo Cirielli.
The European Union published its initial national control lists for exports on October 20, as part of the Dual-Use Regulation. These lists cover items not explicitly mentioned in the regulation, such as nuclear materials, special materials, and various types of equipment, allowing member states to impose export restrictions for public safety reasons, including counterterrorism and human rights concerns. The Netherlands has focused its list on semiconductor manufacturing machinery, while Spain has heightened controls on quantum computing, additive manufacturing, and other emerging technologies. France has also released a list emphasizing quantum computing technologies and advanced electronic components.
Initially, Leonardo had an agreement with KNDS (a group formed by Nexter and Krauss Maffei Wegmann) in 2023 to produce an Italian-enhanced Leopard 2A8 in Italy. However, this agreement collapsed due to unresolved issues and the lack of viable industrial synergies between the two groups. Leonardo has now partnered with Rheinmetall, signing a new agreement to develop KF 51 Panther tanks and KF 41 Lynx infantry fighting vehicles as part of the Italian Army’s AICS or A2CS modernization program. The joint venture is expected to be operational by September and will handle contracts with the Italian Ministry of Defence.
The primary focus will be on the new Main Battle Tank (MBT) based on the KF 51 Panther. Rheinmetall will handle the tank’s chassis, rolling gear, tracks, engine, and transmission, while Leonardo will manage the electronics and turret. The agreement also includes a balanced contribution to armament. A key aspect of the partnership is the development of systems with open architecture, allowing for continuous upgrades at minimal costs to address evolving battlefield threats. If timelines are met, the La Spezia facility, already involved in modernizing Ariete tanks and producing HITFACT Mk II and HITFIST turrets, could start producing the new tanks within two to three years of signing the contract. This venture represents a significant opportunity marked by a 30% increase in workforce and ongoing infrastructure upgrades.
The new tank will enable Leonardo and Rheinmetall, partners in the European Main Ground Combat System (MGCS) program, to develop technologies for the European Defence Fund (EDF) program, potentially leading to market success. KNDS is currently offering the Leopard 2A8, which Italy was supposed to purchase, while Rheinmetall is also involved in upgrading British Challenger 2 tanks and France’s future Ascalon program. The competition includes the US M1 Abrams and South Korea’s K2 tanks, which are gaining traction in Europe. Consequently, while the MGCS program won’t be deployed before 2035, the Leonardo-Rheinmetall initiative may well be the most modern combat vehicle in Europe for some time.
Italian Defense Minister Guido Crosetto addressed the Chamber of Deputies, elaborating on key themes from the NATO Summit held in Washington from July 9 to 11. He highlighted the significance of deterrence, defense, and the southern flank of the Alliance, emphasizing that Italy’s security is linked to stability in the Mediterranean and Africa. Crosetto also underscored the need for enhanced cooperation with Indo-Pacific partners and voiced concerns about the Middle East, stressing the urgency for effective international engagement.
Crosetto stressed the need to ensure the security of supply chains and promote multinational procurement initiatives to boost production and maintain technological superiority.
Despite financial constraints due to high public debt and EU spending limits, Italy remains a significant operational contributor to NATO, with forces deployed across various fronts. Crosetto expressed disappointment with the appointment of a Spanish official as the special representative for the southern flank, arguing that it undermines the intended political impact.
Crosetto also addressed the situation in the Middle East, particularly the recent missile attack on Majdal Shams. He emphasized the need to strengthen Lebanese armed forces to counter Hezbollah and called for enhanced UN efforts to implement resolution 1701. The importance of the UNIFIL mission and the safety of Italian troops in the region was also noted.
Italy and China have signed a new three-year action plan aimed at exploring new forms of cooperation. This agreement was formalized by Italian Prime Minister Giorgia Meloni and Chinese Premier Li Qiang in Beijing. The plan emphasizes enhanced trade and investment opportunities, ensuring better market access and fair competition for businesses. It focuses on strengthening financial collaboration to accelerate green transition efforts. The plan seeks to maintain momentum in bilateral relations, reflecting the ancient Silk Road’s spirit of dialogue and mutual understanding.
The plan supports a rule-based, open, fair, and transparent multilateral trading system, with ongoing WTO reforms. It also highlights the importance of eliminating non-tariff barriers and ensuring a level playing field for businesses. The action plan outlines areas of focus, including trade, finance, innovation, sustainable development, healthcare, and cultural exchange.
At Invimit Sgr, Stefano Scalera and Mario Valducci have been appointed as CEO and Chairman, respectively. This change marks a shift from Lega to Forza Italia influence, with Valducci representing the latter.
Stefano Scalera has held various senior positions at the MEF since 2011, focusing on PNRR and investment activities. He has also served as Vice Chief of Staff, dealing with investments, innovation, and CIPE-related activities. His past roles include Director of the Agenzia del Demanio and board member of TELT, which is overseeing the Torino-Lione railway project. Mario Valducci is a seasoned professional with a background in accounting and corporate management. He has worked with Price Waterhouse Cooper, Fininvest, and Standa. A founding member of Forza Italia, Valducci later served as a member of the Authority for Transport Regulation.
At Consip, the Ministry of Economy and Finance has appointed a new board for the 2024-2026 term. Stefano Tomasini has been named Chairman, and Marco Reggiani is the new CEO. Elena Comparato has also been appointed as a board member.
At the sixth shareholders’ meeting of the Gestore dei Servizi Energetici (GSE), Paolo Arrigoni and Vinicio Mosè Vigilante have been reappointed as President and CEO, respectively. The board will continue in its current form until the approval of the 2026 budget. Roberta Toffanin and Caterina Belletti remain on the board, while Giovanni Quarzo, the current head of the Fratelli d’Italia (FdI) group in the Rome City Council, replaces Andrea Ripa di Meana.
Arrigoni has been GSE’s President since March 2023. An engineer and former senator from the League (Lega), he has served on various parliamentary committees and was a mayor of Calolziocorte from 2003 to 2013. Vigilante, who has been with GSE since its inception and previously served in roles at Enel and GRTN, continues as CEO.
A businesswoman and former Forza Italia senator, Toffanin is currently an expert in institutional and European affairs for the Ministry of Environment and Energy Security. She was previously a board member of GSE and held several key legislative positions.
An administrative law expert and former GSE board member, Belletti is now on the board of Ferrovie dello Stato and serves as president of APT Gorizia. She also provides legal consulting on environmental issues and PNRR projects. Quarzo, an attorney and new GSE board member from FdI, has been active in the Rome City Council since 2006. He chairs several committees and represents FdI in local governance.
The Golden Power Office has summoned the leaders of Taiwanese cement company TCC to discuss their bid to acquire the remaining shares of Nhoa, an Italian firm specializing in energy storage and electric mobility systems. TCC Group Holdings currently owns 88.8% of Nhoa and aims to purchase the remaining shares and delist the company from the Paris Stock Exchange. TCC first acquired a stake in Nhoa in 2021 when Nhoa was part of the French group Engie, quickly increasing its share from 60.4% to 88.8%. This acquisition was subject to special conditions under the Golden Power decree, including mandatory notifications for any changes in governance.
Concerns have arisen that TCC’s takeover and governance changes could shift Nhoa’s strategy towards a more “Asian” direction, given TCC’s strong connections with China. On May 30, Nhoa’s board decided to renew CEO Carlalberto Guglielminotti’s contract for only one year instead of the usual three. Additionally, Asian executives have been appointed to all boards. Guglielminotti has also been replaced as president of Nhoa Corporate and Atlante by Chang An Ping and Cheng Yao Hui.
TCC asserts that Nhoa’s governance has not been radically altered and claims to have adhered to all Golden Power regulations, including voluntary updates and recent notifications about the takeover in France. Chang An Ping, TCC’s president, justified Guglielminotti’s one-year renewal by stating that it is standard practice to put pressure on underperforming managers to improve results. Despite Guglielminotti’s recent positive performance report, TCC argues that Nhoa needs further financial support to survive.
CDP has reported a net profit of 1.8 bln of euro for the first half of 2024, a slight decrease from 1.9 bln in the same period last year. Despite this, the group’s performance remains strong, with significant increases in investments and financial activities. CDP allocated 11.8 bln, up 2.6% from 11.5 bln in the first half of 2023. Investments rose 2.8% to 33.3 bln, leveraging committed resources by a factor of 2.8. Total credits to businesses, public administration, infrastructure, and international cooperation reached 126 bln, up 2% from the end of 2023.
Overall fundraising amounted to 356 bln, with postal savings at 287 bln and bond issuance at 20 bln, reflecting a 1% and 7% increase respectively from the previous year. Consolidated net profit increased to 3.3 bln from 2.8 bln. The 2.8% increase in activated investments highlights CDP’s ongoing effectiveness in supporting Italy and expanding its activities domestically and internationally. Fabio Massoli continues as the head of accounting and financial sustainability, ensuring consistent management.
Enel has announced a significant profit increase of 20% for the first half of 2024, reaching 4 bln of euro. This growth is supported by an 8.8% rise in ordinary EBITDA to 11.7 bln and a 20.6% rise in ordinary net income. The company continues to advance its energy transition and decarbonization strategies, strengthening its 2024-2026 strategic plan. Net Ordinary Income: 3.96 bln, up 20.6% from the previous year. Revenue: 38.73 bln, a decrease of 17.8% from H1 2023. EBITDA: 11.68 bln, an increase of 8.8%. EBIT: 8.99 bln, up 46.7%. Investments: 5.28 bln, down 12.6% year-over-year, primarily focused on Enel Grids and Enel Green Power.
Enel’s energy production for H1 2024 was 96.74 TWh, a 5.2% decrease from H1 2023. Renewable energy production increased by 11.9% to 67.65 TWh, while thermal energy production dropped by 42% to 16.85 TWh.
Emission-free energy reached 82.6% of total generation, with a goal of achieving net-zero emissions by 2040. Electricity transported on Enel’s distribution networks amounted to 236.8 TWh, with a 2% increase in Italy. Enel’s strategic plan for 2024-2026 includes total gross investments of approximately 35.8 bln: 18.6 bln for quality, resilience, digitalization, and new connections. 12.1 bln focused on onshore wind, solar, and storage. 3 bln for active portfolio management and multi-play offers.
Eni, led by Claudio Descalzi, reported a proforma adjusted operating profit of 4.1 bln of euro in the second quarter of 2024, surpassing analysts’ expectations of 3.77 bln. The net adjusted profit was 1.5 bln, down 21% from Q2 2023 but still above the projected 1.42 bln. For the first half of the year, Eni’s net profit reached 3.1 bln, with an adjusted cash flow of 3.9 bln, totaling 7.8 bln for the semester. This covers investment needs of 4.1 bln and dividends of 2 bln. Eni has revised its full-year EBIT estimate to approximately 15 bln, with expected cash flow exceeding 14 bln.
The 6% increase in production compared to 2023 was driven by key projects in Côte d’Ivoire, Floating LNG in Congo, and increased contributions from Libya and Neptune integration. This performance has positively impacted Eni’s stock, which surged over 4% at the Milan Stock Exchange. Eni has also made significant progress in reducing net debt and managing its portfolio. This financial strength allows to accelerate its share buyback program to 1.6 bln, highlighting its commitment to business growth and shareholder returns.
Poste Italiane has released its financial results for the first half of 2024, showcasing significant growth. Revenue reached 6.3 bln euro, with an underlying growth of 7.3%. The second quarter alone saw revenue of 3.1 bln, reflecting an 8.7% year-over-year increase. Adjusted EBIT grew 14% to 1.5 bln, and net profit exceeded 1 bln.
Poste Italiane continues to improve its Green Index, reflecting enhanced sustainability efforts. The energy business contributed 19 mln in revenue during the second quarter and 34 mln for the first half of 2024.
Tim’s board approved the preliminary financial results for the first half and second quarter of 2024, reflecting the impact of the NetCo separation completed on July 1. Concurrently, Fibercop, the new wholesale operator for fixed-line telecommunications, outlined its organizational structure and investment plans.
Tim reported a 4% increase in revenue for Q2, totaling 7.1 bln euro for the first half of 2024. The company’s domestic revenues grew by 1.6%, while Brazilian revenues rose by 7.8%. Post-NetCo sale, Tim’s net financial debt decreased to 8.1 bln, a strategic move aimed at reducing the previous 14 bln debt burden. EBITDA increased by 9.4% to 2.1 bln. The sale of NetCo reduced domestic operational costs by approximately 800 mln in H1 2024.
Fibercop approved a 1.4 bln investment plan for H2 2024 to accelerate fiber optic network deployment. Massimo Sarmi will oversee institutional relations and national security-related assets. Luigi Ferraris will handle strategy and industrial management. The executive team includes Andre Rogowski (CFO), Elisabetta Romano (Chief Technology & Operations Officer), Adriano Mureddu (Chief Human Resources Officer), Massimo Bruno (Chief External Relations Officer), Giovanni Venditti (Chief Legal Officer), Simone Bonannini (Chief Commercial Officer), Giovanni Moglia (Chief Regulatory Affairs Officer)
hello@haizum.eu
P. IVA 12561140968
Via Pattari, 6, 20122 Milano MI
© 2022 Created by ABCPRODUCTION.digital
