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Italian senate gives green light to Ilva decree

28 Jul 2016 16:57 (+01:00 GMT)
Italian senate gives green light to Ilva decree

London, 28 July (Argus) — The Italian senate has voted in favour of the Ilva decree, which will allow the sale of the troubled steelmaker to proceed.

The decree was passed yesterday with 168 votes in favour, 102 against and two abstentions. On 26 July, the Italian government called for a vote of confidence in the decree. There are concerns that the welfare of the community and the environment in Taranto are being overlooked in order to prioritise the interests of the steel industry.

There are doubts about whether Ilva's steel assets can be fully revived, with a representative from the European Commission recently telling Argus that the business represents such a significant portion of regional GDP that authorities are unwilling to close it, regardless of the fact that it faces potentially insurmountable challenges.

Two consortiums want to purchase Ilva — one headed by global steelmaker ArcelorMittal and the other by Italian steelmaker Arvedi.

Both groups submitted bids on 30 June and are midway through a 120-day initial discussion period focusing on the aspects of their offers concerning improvements to Ilva's environmental performance.