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122:, fearing a credit crunch with subsequent mass dismissals and a wave of social unrest, started to take over the banks' stakes in large industrial companies (such as steel, weapons and chemicals). At the same time, Mussolini tried to inject capital into failing businesses (Though restructured later). Although initially conceived as a temporary measure, IRI continued to operate throughout the period of the Fascist regime and well beyond. Although IRI was not intended to carry out real
203:, president of the Institute from 1960 to 1979. In his writings, Petrilli developed a theory that emphasized the positive effects of the "IRI formula". Across IRI, companies were used for social purposes, and the state had to bear the costs and inefficiencies generated by their investments. IRI did not always follow normal commercial practices, but invested in the interests of the community, even uneconomically and to the extent of generating "improper charges".
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of
Deputies that “Three-fourths of Italian economy, industrial and agricultural, is in the hands of the State.” The IRI heavily succeeded in its goals as it saved failing banks and companies by restructuring and refinancing the companies and banks. By 1939 the IRI and other government agencies “controlled over four-fifths of Italy’s shipping and shipbuilding, three-quarters of its pig iron production and almost half that of steel.” Political Historian
210:, who said: "A public company, if not based on economic criteria, tends to a hospice-type of charity." Since the objectives of the state were to develop the southern economy and to maintain full employment, the IRI had to concentrate its investments in the south and to develop jobs in their companies. Petrilli's position reflected those, already widespread in Christian Democracy, that sought a "
324:, to counterbalance the weight of the Catholics with those of big business and the laity, represented by the Republicans. The appointment of the heads of banking, financial and other major companies was decided by the presidential committee, but especially during the tenure of Petrilli, the powers were concentrated in the hands of the president and a few people close to him.
160:, who, planning to increase the production capacity of the Italian steel industry, formed an alliance with private industry. This gave IRI the new role of developing the industrial infrastructure of the country, not by means of individual investments, but by an unwritten division of labour. Examples were the development of the steel industry and the
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and many banks, steel, food, chemicals and telecom companies. It was divested and privatized during the 1980s and 1990s and eventually dissolved in 2002. The
Andreatta-Van Miert agreement marked a significant acceleration of privatization, which started in 1992. Despite some opinions to the contrary,
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owner and operator of a large number of major banks and companies. By
January 1934, the IRI reported that it controlled “48.5 percent of the share capital of Italy,” and a few months later acquired the capital of the banks themselves, prompting Mussolini to declare on May 26, 1934 to Italy's Chamber
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noted that “This level of state intervention greatly surpassed that in Nazi
Germany, giving Italy a public sector second only to that of Stalin’s Russia.” In reality, the IRI's activity was actually limited on the one hand to providing assistance mostly financing, and the other it was reduced
276:. To avoid serious employment crises, the IRI was often called in to help private companies in trouble: examples are the bailouts of Motta and Shipbuilding Rinaldo Piaggio and the acquisition of food companies by Montedison. This gave rise to more activities and dependents for the Institute.
364:
In 1980, IRI was a group of about 1,000 companies with more than 500,000 employees. For many years, it was the largest industrial company outside the United States. In 1992 it ended the year with revenues of 75,912 trillion lire, but with losses of 5,182 billion. In 1993 it was the world's
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and was never called into question by later governments. In 1997 it reached the levels of indebtedness secured by the
Andreatta-Van Miert agreement, but divestitures continued and the institute had lost any function but to sell its assets and to move towards settlement.
301:. At its head were a board of directors and an advisory board, consisting of a Chairman and members appointed by the ruling political parties. The president of IRI was always appointed by the Christian Democrats, the vice-presidency was often provided by the
151:
After the war, the survival of the
Institute was uncertain, as it had been created more as a temporary solution than to meet long-term goals. But it proved difficult for the state to make the large investments needed for
617:
589:
Stuart
Holland (ed.) The State as Entrepreneur, New dimensions for public enterprise: the IRI state shareholding formula. 1972, The Centre for Contemporary European Studies, University of Sussex.
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118:
In 1930, the Great
Depression affected the Italian financial sector, seriously disrupting credit lines and making it difficult for companies to obtain loans. The Fascist regime led by
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that would only yield returns in the long term. So IRI retained the structure it had under fascism. Only after 1950 was IRI's function better defined: a new thrust was instigated by
602:
361:
have been dubbed "new IRI", with some negative connotations, to indicate that their purposes and policies tend to patronage, according to critics, rather than economic criteria.
342:
The IRI name remained in journalistic language as a byword for those who assign public investments to companies without strong business criteria. Government agencies such as the
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in 1992, the board was reduced to only three members, and the influence of
Christian Democrat and other parties, in a period when many of their members were involved in the
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188:" because it allowed for cooperation between public and private capital. Many companies had both kinds of capital. Many in the IRI group remained publicly traded, and
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515:
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the
Treasury chose not to privatize the IRI, but to sell off its operating companies; this policy was inaugurated under the first government of
143:
exclusively to accounting and administrative control, without much interference in drawing up technical and economic plans on a large scale.
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After World War II, IRI became one of the largest state conglomerates in the world, owning many diverse businesses such as the
426:
86:; English: "Institute for Industrial Reconstruction") was an Italian public holding company established in 1933 by the
196:
184:
government, saw the "IRI formula" as a positive example of state intervention in the economy, better than the simple "
36:
30:
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230:; IRI's mixed system of state-owned enterprises seemed to achieve this hybrid between the two polarised systems.
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Critical of these welfare-oriented practices was the second President of the Italian Republic, the Liberal
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The Italian economy grew rapidly in the 1960s, the IRI was one of the protagonists of the "
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Il dissesto programmato. Le partecipazioni statali nel sistema di consenso democristiano
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Il sistema delle imprese a partecipazione statale nell'esperienza italiana
516:"Struttura dei monopoli industriali in Italia stampa 1949 Progresso Roma"
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issued by the Institute to fund their companies were heavily subscribed.
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seventh-largest company by revenue, with 67.5 billion dollars in sales.
452:(telephone company owned by IRI and founded by it in 1933; merged with
272:. Others were planned but never carried out, such as the steelworks of
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262:
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339:, the management of IRI was centralized in the hands of the Treasury.
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15:
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The Oxford Handbook of the Italian Economy Since Unification
492:, 2nd edition, New York: NY, Routledge, 1994, pp. 34-35
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Financial services companies disestablished in 2002
335:investigation, was greatly reduced. In the year of
110:of the 1950s and 1960s. It was dissolved in 2002.
94:and finance banks and private companies that went
633:Financial services companies established in 1933
505:2nd edition, New York: NY, Routledge, 1994, p.35
195:At the head of IRI were leading members of the
180:". Other European countries, particularly the
223:
8:
603:Formerly government-owned companies of Italy
628:Conglomerate companies established in 1933
80:Istituto per la Ricostruzione Industriale
66:Learn how and when to remove this message
643:Italian companies disestablished in 2002
638:Holding companies disestablished in 2002
551:, Oxford, Oxford University Press, 1962.
29:This article includes a list of general
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327:After the transformation of IRI into a
284:For most of its history the IRI was an
548:Italy: A Study in Economic Development
476:, Oxford University Press, 2013, p. 59
623:Italian companies established in 1933
613:Holding companies established in 1933
7:
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309:for more than twenty years and then
238:IRI invested very large amounts in
106:, IRI played a pivotal role in the
35:it lacks sufficient corresponding
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290:, which reported formally to the
242:, such as in the construction of
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427:Economy of Italy under fascism
1:
563:Bruno Amoroso – O.J. Olsen,
503:Mussolini and Fascist Italy,
164:and the construction of the
490:Mussolini and Fascist Italy
440:(mechanics and automobiles)
423:(Bank of National Interest)
417:(Bank of National Interest)
411:(Bank of National Interest)
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409:Banca Commerciale Italiana
292:Ministry of State Holdings
377:system, the flag carrier
344:Cassa Depositi e Prestiti
197:Christian Democracy party
560:, Milano, Giuffrè, 1975.
520:Biblioteca Di Via Senato
472:Gianni Toniolo, editor,
178:Italian economic miracle
108:Italian economic miracle
403:Autostrade per l'Italia
287:ente pubblico economico
234:Investments and rescues
222:, dating from the 1943
168:, which began in 1956.
50:more precise citations.
579:, Bari, Dedalo, 1992,
569:, Bari, Laterza, 1978.
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566:Lo stato imprenditore
438:Leonardo-Finmeccanica
268:and Pratola Serra in
446:(Public broadcaster)
434:(naval construction)
554:Pasquale Saraceno,
226:Codice di Camaldoli
166:Autostrada del Sole
501:Martin Blinkhorn,
488:Martin Blinkhorn,
266:Pomigliano d'Arco
201:Giuseppe Petrilli
172:"The IRI formula"
162:telephone network
154:private companies
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274:Gioia Tauro
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98:during the
92:restructure
90:to rescue,
48:introducing
597:Categories
526:2022-03-19
461:References
405:(highways)
375:autostrada
280:Governance
216:liberalism
214:" between
199:, such as
31:references
543:Vera Lutz
244:Italsider
220:communism
212:third way
456:in 1997)
397:Alitalia
391:See also
379:Alitalia
128:de facto
96:bankrupt
537:Sources
270:Irpinia
263:Alfasud
259:Taranto
114:History
44:improve
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33:, but
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581:ISBN
450:STET
218:and
78:The
444:RAI
316:arz
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481:^
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