Italy is making a bold move to address its massive public debt by putting its crown jewels up for sale. Prime Minister Giorgia Meloni’s hard-right government aims to raise 20 billion euros by 2026 through a privatisation program, which includes selling off a stake in Poste Italiane, the country’s postal service that generates significant profits from its insurance and banking operations.

Despite Meloni’s previous declaration that the postal service is a ‘crown jewel’ that should remain in state hands, the government is now moving forward with plans to sell a stake in Poste Italiane, as well as stakes in rail company Ferrovie dello Stato and energy giant Eni.

However, analysts are skeptical that these sales will make a significant dent in Italy’s debt, which exceeds 2.8 trillion euros, the second highest in the eurozone in proportion to GDP. The government’s approach to privatisation has been emphasized as markedly different from previous practices, with Meloni stating that it will not equate to favorable deals for entrepreneurs.

While the government intends to maintain public control, the decision to sell a stake in the postal service to foreign investors marks a shift from Meloni’s earlier stance against the privatisation of Poste Italiane. This decision has drawn criticism from opposition parties, with lawmaker Andrea Orlando expressing concern that the homeland should not be sold.

The privatisation campaign began with the sale of a quarter stake in bailed-out lender Monte dei Paschi di Siena in November, as part of the bailout conditions agreed with the European Commission. The move to sell off state assets has sparked controversy and debate within Italy’s political landscape.