EU opposes ITA Airways-Lufthansa deal, says Italian Finance Minister

EU opposes deal: Italy's Economy Minister Giancarlo Giorgetti disclosed on Saturday that European Union authorities are resistant to endorsing a proposed partnership between airlines ITA Airways and Lufthansa. 

Giorgetti revealed that Italy has been engaged in a ten-month battle against EU opposition to the deal.

Lufthansa, the German carrier, has been seeking a 41 per cent stake in the state-owned Italian airline for 325 million euros as part of a capital increase. 

However, the European Commission is anticipated to issue a statement of objections this month, outlining its concerns.

Giorgetti addressed an event in Rome, expressing frustration with the EU's stance, stating, “We have been fighting for about 10 months now against the EU, which does not want or allow us to do this deal.”

Earlier this year, Europe's competition watchdog had cautioned that the concessions offered by Lufthansa were insufficient to address competition concerns. 

Despite Lufthansa's willingness to provide targeted remedies, the European Commission deemed them inadequate in scope and effectiveness.

Giorgetti criticised the EU's regulatory approach, asserting that it stifles entrepreneurial spirit and hampers the creation of synergies.

(With Reuters Inputs)