Alitalia talks enter crucial stage in test for Draghi at EU

Discussion on the future of cash-strapped Alitalia entered a crucial phase, as talks with European authorities resumed, an early test of Italian PM Mario Draghi’s relationship with Brussels. The Italian government and the EC agreed to “work constructively together to find workable solutions on the Alitalia file,” a Commission spokesman said on Friday after Commission Vice President Margrethe Vestager spoke to key Italian government officials. The Commission is seeking a radical overhaul of the airline, which has endured losses for years. Draghi has so far taken a hands-on approach, meeting with the development, transportation and finance ministers this week to refine the plan for Alitalia. Vestager spoke with Finance Minister Daniele Franco, Economic Development Minister Giancarlo Giorgetti and Infrastructure Minister Enrico Giovannini. Both sides agreed to start technical talks next week to “evaluate in detail potential solutions aimed at ensuring that the new carrier is born as soon as possible in compliance with the procedures of national and European law,” according to a joint statement from the Italian ministries. The new premier starts out with good standing in Brussels, given his past role as president of the European Central Bank. But the commission, which oversees rules limiting state aid within the bloc, isn’t convinced that Italy’s current proposal can offer a better outcome than previous projects that cost taxpayers money and failed to return Alitalia to health.<br/>