In a significant development for European financial markets, Italy's Deputy Prime Minister has revealed ambitions to attract major Italian companies away from the London Stock Exchange, dealing a potential blow to the City's status as a global financial hub.
Antonio Tajani, who also serves as Italy's Foreign Minister, confirmed that the Italian government is actively encouraging businesses to consider listing in Milan rather than London. The comments come amid growing concerns about the London market's competitiveness following Brexit.
Barilla Pasta Maker in Spotlight
The remarks emerged during discussions about Barilla, Europe's largest pasta producer and one of Italy's most iconic food brands. While Barilla has not publicly confirmed any plans to move its listing, Tajani's statements suggest the Italian government sees an opportunity to strengthen Milan's position at London's expense.
"We're working to bring Italian companies to list on the Italian stock exchange," Tajani stated, adding that having major national champions listed domestically would benefit both the companies and Italy's financial ecosystem.
Post-Brexit Market Competition Intensifies
This development represents the latest challenge for London's financial sector, which has faced increased competition from European centres since Britain's departure from the European Union. Several companies have reconsidered their listing locations amid changing market dynamics.
The London Stock Exchange has historically attracted numerous international listings, including several major Italian firms, drawn by its deep liquidity pools and global investor base. However, European rivals have been increasingly aggressive in wooing businesses away from London.
Government Response and Market Implications
UK Business Secretary Peter Kyle responded to the situation by emphasising the government's commitment to maintaining London's competitive edge. "We are constantly engaging with businesses about listing in London," Kyle noted, though he acknowledged the increasingly competitive landscape.
Financial analysts suggest that while individual company movements might not dramatically alter the balance between London and European exchanges, a trend of departures could gradually erode London's position as Europe's premier financial centre.
The situation highlights the ongoing realignment of European financial markets in the post-Brexit era, with national governments increasingly viewing stock exchange listings as matters of strategic economic importance.
