Jul 11, 2024, 10:45 AM
Jul 11, 2024, 10:45 AM

EU Under Pressure to Approve Lufthansa's Italian Airline Deal

Highlights
  • The European Commission is facing significant political pressure from Italy regarding Lufthansa's proposed acquisition of an Italian airline.
  • Italy argues that the purchase is vital for the stability of its struggling aviation sector.
  • The situation reflects broader anxieties about national interests versus EU regulatory frameworks.
Story

The European Commission is under significant political pressure from Italy regarding Lufthansa's acquisition of the struggling state-owned airline, ITA Airways. Margrethe Vestager, the EU's competition chief, firmly rejected allegations that the approval of the deal was politically motivated to secure support for European Commission President Ursula von der Leyen's second term. During a press conference, Vestager expressed her frustration over persistent claims that the decision was influenced by political considerations, emphasizing that it was made strictly under competition law. Vestager highlighted the importance of maintaining the integrity of the Commission's decision-making process, stating that any perception of political bias could lead to severe repercussions for the Commission's leadership. She dismissed the notion that the merger's approval would inherently benefit von der Leyen, arguing that such assumptions lack merit. The approval came after Lufthansa agreed to relinquish valuable airport landing slots, a move that has historically been viewed as insufficient to enhance competition in the airline industry. Italian officials, including Deputy Prime Minister Matteo Salvini, have been vocal in their support for the deal, warning that a veto would be perceived as a "hostile act" against Italy. Prime Minister Giorgia Meloni has previously criticized the Commission for its slow response to the airline's financial issues, expressing frustration over being excluded from key discussions. Meloni's abstention from supporting von der Leyen's candidacy reflects ongoing tensions between Italy and the EU regarding decision-making processes.

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