Privatisation without liberalisation? : the strange case of Italian railways, and how adjustments to the government's reforms could achieve gains for rail users and taxpayers

The Italian government is proceeding with the privatisation of the Ferrovie dello Stato Italiane (FSI Group), and is considering a merger with the government-owned highways company. A further proposal has been made to merge the FSI Group with Azienda Nazionale Autonoma delle Strade SpA (ANAS), the state-owned company which owns and manages large parts of the national road network. In this article both aspects will be examined. We argue that changes could be made to the privatisation and reform process, learning from the British experience, which would bring substantial benefits to Italian rail users and taxpayers. [Publisher's Text].