16 Jun 2012

Italy to sell State companies

7:29 am on 16 June 2012

The Italian government hopes to raise 10 billion euros by selling three State-owned companies, in a bid to reduce debt.

Fintecna, Sace and Simsest, are all owned by the country's economy ministry. The BBC reports more privatisations are likely.

The government is also reducing the size of its military forces and plans to sell property released by this process.

In other cost-cutting measures, the government intends to merge some departments and reduce the number of employees.

Italy's debt is equal to about 120% of gross domestic product.

On Thursday, the Bank of Italy announced that public debt had reached a record high of 1.95 trillion euros.