Italy Government Wins Vote on New Toll-Road Concession Rules

(Bloomberg) -- Italy's government won initial approval for a law that makes it cheaper to strip companies of public concessions, a move that will give it more leverage in talks to resolve a clash over Autostrade per l'Italia SpA's license to operate highways.The new rules would significantly reduce the penalties Italy would have to pay in case of revocation. In Autostrade's case, potential compensation would fall to as little as 6 billion euros ($6.5 billion) from more than 20 billion euros.The coalition of Prime Minister Giuseppe Conte resorted to a confidence vote to ensure the measure passed, a tactic often used in Italy to secure support. The lower house of Parliament voted by 315 to 221 in favor of the bill, that included several other items including new state jobs. It now goes to the Senate for final approval.Conte's coalition government is locked in difficult negotiations with the Benetton family-owned Autostrade, a unit of Atlantia SpA, which operates more than half of Italy's toll roads.The government has sought to change terms of the company's license deal despite pressure from investors, with billions of euros of infrastructure investment possibly at risk. The standoff was triggered by the deadly collapse of a bridge in Genoa in 2018.Conte's coalition has been weakened by repeated attacks from the small Italy Alive party of ex-premier Matteo Renzi in recent days. Renzi may threaten to ditch the coalition during an interview with Rai television Wednesday evening, Corriere della Sera reported.To contact the reporter on this story: John Follain in Rome at jfollain2@bloomberg.netTo contact the editors responsible for this story: Alessandro Speciale at aspeciale@bloomberg.net, Jerrold Colten, Karl MaierFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.2020 Bloomberg L.P.
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