The Haizum Italian Insider Report is a monthly news service that monitors the most relevant issues in Italy. This document focuses on political, Economical, and Strategic matters, taking into account 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: 20 Minutes
Last month in Italy, there were developments regarding national security , diplomacy, intelligence, and economic advancements. One was Italy’s reconsideration of its arms sales embargo on Saudi Arabia and the UAE. This decision sent shockwaves through the defense industry, opening discussions about potential defense partnerships and unlocking opportunities for Leonardo and Fincantieri.
The Golden Power mechanism represents one of the most relevant topics. Designed to safeguard Italy’s valuable assets from the ever-increasing influence of China, this powerful tool was put into action to protect Pirelli. This move highlighted Italy’s strategic program in a rapidly changing global landscape and demonstrated its commitment to protecting its own interests.
Meanwhile, the future of Italy’s intelligence community took center stage. Experts and analysts studied possible reforms, and its implications, to the laws governing the structure of Italian security entities. The appointment of new deputy chiefs and directors within the Ministry of the Interior signaled a shift in leadership roles.
Italy’s diplomatic efforts also received attention as Taiwan‘s Foreign Minister visited Milan. The visit sparked discussions on crucial topics like microchips. Moreover, the Minister of Foreign Affairs presence at the Ukraine Recovery Conference in London demonstrated support for Ukraine and Italian commitment to international cooperation. Simultaneously, the Intermediterranean Commission held its General Assembly, fostering a vision of long-term regional cooperation.
Economic developments see prominent leadership changes in various organizations. The Società Stretto di Messina renewed its purpose with a fresh leadership. Meanwhile, the banking sector witnessed reconfirmations and appointments like Lando Maria Sileoni as the secretary general of FABI (Federazione Autonoma Bancari Italiani). Potential candidates emerged for the leadership transition at the European Investment Bank . Italy’s Treasury advocated for changes in the European Stability Mechanism, in the perspective of a more growth-oriented approach.
In the energy sector, notable appointments took place. Gianni Armani
assumed the position of Director General at Enel. Eni acquiredNeptune
Energy Group Limited, solidifying its presence in key geographies and getting closer to its goals of sustainable energy production and emissions reduction.
In the telecommunications industry, former intelligence community members continue to obtain crucial positions in strategic companies. Alessandro Pansa, a figure with deep security expertise, joined TIM‘s Board of Directors.Meanwhile, TIM embarked on exclusive negotiations with U.S. fund KKR for the sale of its grid, with the Government’s influential Golden Power filter positioned as a key player in shaping the outcome.
In 2019, the Italian Government suspended arms sales to Saudi Arabia, as well as the United Arab Emirates, to prevent their use in the conflict in Yemen. But the Italian restrictions eased: on May 31 the Government announced that the need for the embargo had vanished. The Gulf countries are a thriving defense market. Rome and Riyadh could consider joint strategic partnerships, in line with Saudi Arabia’s Vision 2030 to localize 50% of total defense spending. Leonardo and Fincantieri could benefit from agreements. Saudi Arabian Military Industries (SAMI) is seeking first-rate foreign defense companies with technical know-how. Italian companies participated in the first edition of the World Defense Show 2022 in Riyadh.
The President reiterated that peace for Kyiv must be just and not at the expense of those attacked, based on principles of solidarity and justice. He called on Italy, the European Union, and the Atlantic Alliance to support Ukraine and urged all countries to engage and be willing to find common solutions. He stressed the importance of bold choices and multilateral engagement not only in Ukraine but also in the growing tensions in the Balkans, in order to consolidate and expand the EU project to meet current challenges. The President highlighted the importance of multilateralism in responding to interconnected global problems, such as climate change, health protection, migration management, and human rights protection.
During his speech, the Head of State expressed deep emotion toward the flood-affected areas, particularly Emilia-Romagna and neighboring areas, which he visited recently. He thanked the many countries that have shown concrete solidarity, stressing the universal value of solidarity found in the Italian Constitution.
After Pirelli, the Government is ready to use the Golden Power also for Electrolux to curb possible Chinese sights on plants, technologies, and know-how. The company has denied the willingness of a possible sale, but rumors are keeping the more than 6,000 workers in the group’s six factories apprehensive. In early June, Chinese giant Midea confirmed its interest in the Group. The offer is 3.6 bln euros against 2.7 bln euros in capitalization. In the event of divesting, selling, or transferring the companies, the Government will exercise Golden Power, according to Minister Ciriani.
As director general of the Pompeii Grand Project, Carabinieri Brigadier General Giovanni Di Blasio remains at the helm. Giovanni Capasso will be the deputy project director general. The names for national parks are, for the Vesuvius National Park Authority, Raffaele De Luca, commissioner for two months, and, for the Cilento, Vallo di Diano and Alburni National Park Authority, Giuseppe Coccorullo as president for five years. Anna Elisabetta Castelli will serve as commissioner of the Geominerary Park of Sardinia. The National Institute for Documentation, Innovation, and Educational Research (Indire) also has a new board member: Francesco Manfredi. Pietro Covino will be chairman of the Armed Forces Pension Fund, while Beniamino Quintieri will be of the Sports Credit Institute.
At the headquarters of the Department of Security Intelligence, the intelligence coordination office, a meeting has been held to prepare the works on amending the Law 124/2007, on security entities. The meeting, organized by Alfredo Mantovano, undersecretary of the Presidency of the Council with responsibility for secret services, was attended by several experts, including former Aisi directors Mario Mori and Franco Gabrielli, as well as several COPASIR members. Fiorenza Sarzanini, deputy editor of Corriere della Sera was called to lead the debate.
The amendment of Law 124/2007 represents an important reform that Mantovano wants to complete soon. The thoughts at the moment are on the one hand, that a new law is necessary to merge the two services currently in place (Aisi and Aise). This is Gabrielli’s line. On the other hand, there are those like Mantovano, who believe that a ‘maintenance of 124 is sufficient and are against zeroing the two services into a single body. According to Mantovano, services must be made more efficient, and the way forward is to change organizational rules.
Moreover, Elisabetta Belloni, director of the Department of Security Intelligence, proposes its role to be the only one authorized to interact and talk to the delegated security authority at Palazzo Chigi.
Vittorio Rizzi has been appointed as the deputy chief of the State Police and deputy director-general of the Department of Public Security at the Ministry of the Interior. He replaces Maria Luisa Pellizzari. The Council of Ministers has also appointed Raffaele Grassi as the new deputy chief of the State Police and deputy director-general of the Department of Public Security at the Ministry of the Interior. Francesco Messina has been chosen as the prefect of Padua. Renato Cortese has been appointed as the prefect and director of the Central Inspection Office at the Department of Public Security. Furthermore, the Council has made the following appointments: General Luigi Francesco De Leverano, who previously served as the military advisor to former Prime Minister Mario Draghi, as a counselor of the Court of Auditors, and Carlo Dall’Oppio as the head of the National Fire Brigade.
This is the first time in the country’s democratic history that a member of the Taiwanese Government has visited Italy for institutional meetings. Wu met with four members of the Italian parliament – two from the League and two from Fratelli d’Italia. Milan is where Taipei’s Foreign Ministry announced the opening of a new Taiwan representative office. It is not just about diplomacy: in April, the Ministry of Made in Italy sent a delegation to Taiwan to talk about microchips.
Minister of Foreign Affairs Antonio Tajani went on a mission to London to attend the Ukraine Recovery Conference. The London Conference is in continuity with the April 26 bilateral conference in Rome. Two stages in which Italy plays a central role, include chairing the G7 in 2024 and hosting the Ukraine Recovery Conference in 2025. The Foreign Ministry decides to appoint Davide La Cecilia as a special envoy for Ukraine’s reconstruction.
Roberto Occhiuto has been appointed as the President of the Intermediterranean Commission. The two-day General Assembly of the Commission brought together 40 regions from 8 EU member states and other countries, including Albania, Cyprus, France, Greece, Italy, Malta, Morocco, and Spain. The aim of the assembly was to strengthen long-term cooperation between Mediterranean regions and local authorities.
Società Stretto di Messina appointed a new board of directors and approved new bylaws. CEO Pietro Ciucci and chairman Giuseppe Recchi were appointed. Eleonora Mariani, Ida Nicotra, and Giacomo Francesco Saccomanno are members of the Board of Directors. It is an in-house, wholly public company that will see the participation of RFI, Anas, the Sicilian, and the Calabria Region and, for a share of no less than 51%, of MEF and MiT.
Giuseppe Recchi in 1999 joined General Electric (GE). Until 2011 he was CEO of GE South Europe. In the same year, he was appointed Chairman of Eni. In 2014, Giuseppe Recchi was elected Executive Chairman of Telecom Italia. The same year he also became Chairman of the Telecom Italia Foundation. Among other positions, he was a member of the General Council of Confindustria in 2015. Pietro Ciucci was formerly co-director of the finance department at IRI in 1987, where he served as Director General and a member of the Board of Liquidators. He was then on the board of Banca Popolare di Roma, chairman of Anas, and CEO of the Strait of Messina company.
In a May 4 decree, Pasquale Tridico and Franco Bettoni were removed from the leadership of the two institutes. Micaela Gelera and Fabrizio D’Ascenzo will lead Inps and Inail, respectively. Micaela Gelera is an actuary (former coordinator of the Pensions Commission of the Order of Actuaries. Gelera has been a member of Studio Attuariale Orrù e Associati (now Orion), founded by Giuseppe Orrù, for 27 years. Fabrizio D’Ascenzo is dean of the Faculty of Economics at La Sapienza University.
Marco Mizzau will be the next CEO of CONSIP. With the current Director General of Inarcassa, Barbara Luisi will then be confirmed as president, and Luisa D’Arcano as the new board member. It should be the time for the new top management of CONSAP. Silvio Berlusconi‘s death may have reinforced the possible confirmation of Mauro Masi as chairman. This seems to be subject to the appointment of Francesco Di Ciommo as the new CEO and with broad powers to succeed in the relaunch of the concessionaire. New top management of Sport e Salute: certain the indication of Diego Nepi Molineris as CEO and no agreement yet on the name of the president (position for which Giuseppe De Mita remains in pole position, sponsored by CONI president Giovanni Malagò).
Lando Maria Sileoni was confirmed as secretary general of FABI with 98% of votes. The national secretariat of the Autonomous Federation of Italian Bankers was elected by the organization’s Central Executive Committee at the end of voting at the 22nd National Congress.
The new national secretariat is composed of: Lando Maria Sileoni general secretary (Viterbo), Giuliano De Filippis deputy general secretary (Lecce), Mattia Pari deputy general secretary (Rimini), Franco Casini administrative secretary (Lucca), Mauro Scarin organizational secretary (Milan), Mauro Morelli (Rome), Giuliano Xausa (Vicenza), Luca Bertinotti (Cuneo), Elisabetta Mercaldo (Benevento), Daniele Ginese (Milan), Carlo Milazzo (Milan).
For Sileoni, first elected in 2010 and then again in 2014 and 2018, this is the fourth term, a record for the organization; for Ginese, Mercaldo, and Milazzo this is their debut in the secretariat.
The Ministry of Economy has changed both the chairman and the CEO of Amco, the subsidiary dealing with Non-Performing Loans. Amco’s meeting to appoint a new board of directors announced the entry of Giuseppe Maresca (head of the MEF’s Directorate VI) as chairman and Andrea Munari, (until now chairman of BNL BNP Paribas) as managing director.
The two replace Stefano Cappiello and Marina Natale, respectively. The renewal was decided by the MEF along with an expansion of the board of directors, which will increase from 3 to 5 members, and will now include Silvia Tossini, Antonella Centra, and Ezio Simonelli.
Munari, who at BNL BNP Paribas will leave the baton to Claudia Cattani, has been CEO and Director General of BNL, head of BNP Paribas Italia, and chairman of Findomestic Banca, as well as CEO of Credito Fondiario and Director General of Banca Imi.
Before the renewal of the European Union‘s institutional leadership set for June 2024, Werner Hoyer‘s term expires in December after a dual five-year tenure at the helm of the EIB, the European Investment Bank. Current EU digital and competition chief Margrethe Vestager has announced her candidacy. If appointed, the von der Leyen Commission will lose its antitrust zar before the end of the term.
Finance ministers are likely to discuss the nomination at an informal meeting in September. The clash over the non-ratification of the ESM could likely complicate the negotiations. As for other candidates, there are also: former Italian Economy Minister Daniele Franco, Spain’s vice-premier and finance minister Nadia Calviño, and Latvia’s Valdis Dombrovskis (EU commissioner in charge of economy and trade).
Palazzo Chigi is claiming a change in the nature of the ESM, which should be more focused on the service of growth rather than a mere bailout tool. Europe in recent weeks has begun to take Italian demands into consideration, thanks in part to the backing of Germany. The Treasury, in a document sent to the Foreign Affairs Committee, broke the deadlock ahead of the general discussion hinged for the end of the month in Montecitorio.
The Government bonds of EU Member States, when placed on the market, have as their main guarantee a possible European intervention (through the ESM) in the event of a liquidity crisis or, worse, default.
The No deriving from Italy, by blocking the enforceability of the Mechanism, makes European bonds riskier, thus more costly for the States to issue them and consequently causes a lowering of the rating. Meanwhile, the House Foreign Affairs Committee approved the introductory text of the ESM ratification bill, with only the votes of the PD, Italia Viva, and the Left. The M5S abstained and the majority did not participate. The League and M5S are against it, Forza Italia, PD, and Third Pole are in favor.
The Council of Ministers has appointed Fabio Panetta as Governor of the Bank of Italy, starting from November 1, 2023, after the natural conclusion of Governor Ignazio Visco‘s term on October 31. For Panetta, this marks a return to the Bank of Italy, where he worked for 34 years before joining the European Central Bank (ECB) as an accompanying person and deputy to the Governor, and later, from 2020, as a member of the board.
Gianni Armani, current CEO of Iren, has been appointed Director General of Enel. Flavio Cattaneo, with whom the Roman manager has collaborated in the past, wanted him directly. Armani made no secret of his desire to leave Iren. The decision on the successor of Armani is up to the union pact between the municipalities of Turin, Genoa, and Reggio Emilia.
Rumors are on the following names: former Acea CEO Giuseppe Gola, Algebris top manager Luca Camerano (former Enel and A2a), Stefano Siragusa (former Ansaldo and Tim) much sponsored by Leghist undersecretary Edoardo Rixi. A name that has also been mentioned is Stefano Donnarumma.
Marco Patuano is stepping down from the role of A2A’s chairman to serve as CEO of Cellnex. Rumors about Patuano’s departure started when he was appointed to Cellnex, and discussions on the dual role have conducted to his resignation from A2A.
Nuclear power continues to speak Italian, but only abroad, as shown by Eni‘s advanced projects with the Massachusetts Institute of Technology and Enel‘s agreements with Newcleo. But on the political level, there is fertile ground: the latest generation of nuclear power is no longer taboo for most Italians.
On this basis, the Nuclear Energy Intergroup, which has gathered parliamentarians from all political sides, with the exception of Five Stars and Italian Left, is starting in the Senate.
The purpose of the Intergroup, in this first phase, is to present itself to all national entities in the sector and call them together: Eni, Enel, Edison, Elettricità Futura, Safe Nuclear Italia, Newcleo, Enea, and the Ministry of
Infrastructure and Transport. The approach is in the name of technological neutrality to achieve the goal of carbon-free energy production.
Giuseppina Di Foggia, CEO and General Director of Terna, has been appointed Vice President of GO15, the global association of Very Large Power Grid Operators for electricity transmission, representing approximately 50% of the world’s electricity demand.
ENI and Var Energi acquired Neptune Energy Group Limited, a leading exploration and production company with low-emission, gas-focused assets in Western Europe, North Africa, Indonesia, and Australia. Eni will acquire Neptune’s entire portfolio excluding assets in Germany and Norway. Var is a company listed on the Oslo Stock Exchange and 63% owned by ENI. The transaction represents an opportunity for Eni, enabling it to integrate its activities in key geographies.
At the end of 2021, Enel announced plans to spend 70 bln euros on renewable energy sources, plus another 70 bln in expanding and upgrading electricity grids so that plants can be connected with end users. Under the new administration of Flavio Cattaneo, the general line does not seem to have changed. Enel stated that it can spend up to 5 bln euros more than the
3.5 bln already allocated under the NRRP. Everything will depend on the application period of REPowerEU, the European Union’s program for accelerating the green transition.
Last January Enel was awarded 3.5 bln NRRP calls for tenders to upgrade the capacity of low and medium-voltage electricity grids, which will receive power generated by renewable plants across Italy, and to improve the resilience of infrastructure to extreme weather events.
Large groups such as Enel have the financial strength to advance large sums, which the state will repay later once the European funds arrive. But advancing the funding means “having to classify those funds as debt on the balance sheet,” at least for some period of time. Enel’s debt is already quite heavy: as of March, it stood at 58.9 bln, to be brought down to 51-52 by the end of the year. To achieve the goal, the company has begun a process of divesting assets for 21 bln in all (divestments already closed are 11 bln).
The energy sector is on alert because at the end of June the measure introduced by Mario Draghi‘s Government, which sets a cap (about 60 euros per megawatt hour) on the selling price of energy generated from renewable sources, will expire. If the tax remains it will be difficult to advance money for investment.
Enel: CEO of the Americas resigns Maurizio Bezzeccheri has resigned as the CEO of Enel Americas, amid the company’s ongoing divestment program. The Chief Financial Officer will assume the position on an interim basis. Enel expects to benefit from approximately $1.6 bln in net profit from the divestment in Peru.
The Court of Auditors’ green light to the Ita-Lufthansa partnership has arrived. The agreement provides the sale of 41% of Ita by the Ministry of Economy to Lufthansa. This is the last formal step for the contract. Now the deal goes through European antitrust scrutiny. Only with the green light from Brussels Lufthansa will be able to acquire the stake, paying 325 mln euros as a capital increase. Lufthansa’s shared 2023-2027 business plan calls for revenue growth from the 2.5 bln euros expected this year to 4.1 bln in 2027.
In the new organizational chart, direct reports to the CEO and managing director, Roberto Cingolani, are reduced to eight. Cingolani is in charge of the central functions (personnel, finance, communications, legal affairs, etc.). The new Space organizational unit (Space business) is led by Franco Ongaro and Sustainability by Raffaella Luglini, former Leonardo’s Chief of external relations. Stefano Amoroso, who had previously worked alongside Cingolani at IIT in Genoa, was confirmed at Communications. To lead the Security unity, the new CEO has hired an intelligence officer, Luigi Della Volpe, a general of the Guardia di Finanza who was appointed deputy director of Aise by Giuseppe Conte in January 2021. Cingolani retains interim responsibility for a new unit, called Strategy & Technology. The co-director general, Lorenzo Mariani, will coordinate the five divisions and business units (Aerostructures, Aircraft, Electronics, Helicopters, Cyber, and Security Solutions). Marco De Fazio will head the “Electronics” division and will take the place of Gabriele Pieralli, who is destined to be Telespazio‘s CEO. The heads of the other divisions are confirmed, including Gian Piero Cutillo at helicopters. Tommaso Profeta confirmed at cybersecurity for now. A novelty is the creation of a “Commercial & Business Development” Uo, entrusted to Carlo Gualdaroni, the experienced executive who relaunched the helicopter division. Gualdaroni’s is a super directorate, collecting “the activities and resources” of four units: chief commercial officer, customer support, Unmanned, Us Business development, and the Leonardo International company. Gualdaroni will report directly to Mariani.
The Government, at the Council of Ministers of June 15, 2023, at the proposal of the Ministry of Enterprise and Made in Italy, ordered the exercise of the golden power rule on the transaction notified by China National Tire and Rubber Corporation, regarding the shareholders’ agreement on the governance of Pirelli.
The Government’s decision includes special provisions for the protection of the strategic asset consisting of cyber sensors that can be implanted in tires. Provisions are aimed at protecting the autonomy of Pirelli t, the security of procedures, the protection of strategic information, and the know-how. The Government endows Pirelli with several tools, including a strategic industrial security clearance that provides limits on information accessibility. Pirelli will also establish an autonomous organizational unit for security.
CEO-designate Giorgio Bruno has announced his unwillingness to take the reins of the group. In his place, Camfin named Andrea Casaluci as CEO and Marco Tronchetti Provera as executive vice president. Tronchetti himself had chosen Bruno to succeed him as CEO, after having been his right-hand man for 30 years.
The renunciation came just days after the Meloni government exercised the golden power rule, which gave an extra seat on the board of directors to Camfin and instituted the 4/5 qualified majority for the most strategic decisions. The Government also guaranteed Camfin to continue to indicate the company’s top management positions, including the CEO. The new helmsman-designate Casaluci is 50 years old and has been the general manager of operations at Pirelli since 2018.
It is becoming a common practice to appoint former members of the Intelligence Community or of the armed forces and police in strategic companies. The latest case is Alessandro Pansa surprisingly winning TIM‘s Board of Directors seat against Luciano Carta. Pansa led the DIS and is now chairman of TIM Sparkle. The practice started with Gianni De Gennaro at Leonardo, but there are plenty of cases. In Fincantieri sits the former General Claudio Graziano, who replaced former DIS chief Giampiero Massolo, and in Eni Meloni sent former Guardia di Finanza chief Giuseppe Zafarana.
TIM‘s board chooses U.S. fund KKR to negotiate the grid sale on an exclusive basis. CEO Pietro Labriola was given a mandate for negotiations aimed at obtaining a conclusive and binding offer as soon as possible and in any case by September 30.
Now there are three months of tight negotiations where KKR will open a thorough examination: a great deal of information has already been requested, which will require the participation of auditors and consultants. TIM’s advisors aim to improve the offer not so much and not only in the amount but also and especially in the service contract to better balance the two companies that will be created. The perimeter will also have to be defined. The three months will also be used to engage the dialogue with all interested parties, including Vivendi‘s large shareholders. The international submarine cable company Sparkle is considered strategic (intelligence data passes through it) and will have to pass the Government golden power filter.
Elisabetta Romano has assumed the role of President at Sparkle, the global operator within the TIM Group. As the current Chief Network Operations & Wholesale Officer of TIM. Romano takes Alessandro Pansa’s role,. CEO Enrico Maria Bagnasco, as announced by the company, will continue to lead Sparkle with the same responsibilities given to him last November.
hello@haizum.eu
P. IVA 12561140968
Via Pattari, 6, 20122 Milano MI
© 2022 Created by ABCPRODUCTION.digital
