BREAKING NEWS

BREAKING NEWS

Telecommunication breakdown as chairman leaves Italy's largest firm

Now Reading:

Telecommunication breakdown as chairman leaves Italy's largest firm

Text size Aa Aa

The chairman of Italy’s biggest employer has quit, causing economic and political uproar. The resignation of Marco Tronchetti Provera as head of Telecom Italia follows an announcement earlier this week that the group was to split. Tronchetti has been replaced by Guido Rossi who was president of the company when it was privatised nine years ago.

Guglielmo Epifani, head of Italy’s biggest workers union called the move a farce. “Guido Rossi has already been president of Telecom Italia, and is now back on the board,” he said. “But the group’s economic and financial problem remains.” Telecom Italia has debts of 41.3 billion euros. It is to be reorganised which could lead to the sale of its mobile branch TIM abroad. But Romano Prodi’s government was surprised and unhappy at the news. Pressure is on Prodi after a leaked report recommending the state buy back a part of the company was vehemently attacked by opponents.