(Reuters) – A right-wing alliance led by Giorgia Meloni’s Brothers of Italy party is set to win a clear majority in the next parliament, exit polls showed on Sunday after voting ended in Italy’s national elections.

Here is a list of companies that could be affected by the outcome of the election.

The fall of Prime Minister Mario Draghi’s government weighed on Italian banking stocks.

Exposed to rising yields on Italian debt through their large holdings of sovereign bonds as well as through their cost of funding, banks are also vulnerable to a deterioration in the economic outlook.

The change of government and Meloni’s calls to review Italy’s national recovery plan could threaten Italy’s ability to meet the commitments to which the European Union’s post-pandemic funds are tied.

Italy’s top bank is the second-largest holder of Italian debt after the European Central Bank, and CEO Carlo Messina has repeatedly called on Rome to use its high level of private wealth and public assets to support its debt, reaching “financial independence”.

A new government could give CEO Andrea Orcel a clean slate after he pulled out of the proposed acquisition of Monte dei Paschi di Siena, which has damaged relations with Prime Minister Draghi’s government.

The formation of the new government will serve as the backdrop to the public bank’s latest fundraising appeal in October, which is hitting markets at a difficult time.

The new government will also have to deal with the commitment to reprivatize the bank, after the previous executive secured a one-year extension of the end-2021 deadline to reduce Rome’s 64% stake in the bank.

Italy has introduced measures to tax energy companies to help fund programs to protect businesses and families from soaring electricity costs. The right-wing coalition’s manifesto backs the proposal for a Europe-wide energy price cap, an idea put forward by the current administration that still lacks widespread support in Europe.

The right also wants to negotiate with Brussels on changes to the Italian recovery plan in order to increase spending to deal with the energy crisis and relaunch investment in nuclear energy.

ENEL, ENI Meloni ruled out taking full control of national energy groups Eni and Enel, as the French government did with EDF, while reaffirming that it is the government’s duty to protect assets of national importance and avoid foreign takeovers.

The new government will decide whether to renew the contracts of the CEOs of Enel and Eni who both arrive next year. SNAM The operator of the state-controlled gas network purchased a floating LNG regasification terminal (FSRU) in June to support efforts to find alternative gas supplies. Snam wants to start work to moor the terminal in Piombino, Tuscany, by the end of October. It aims to connect it to the gas network by next spring to increase LNG imports.

The new government could decide to slow down or speed up infrastructure that is already meeting resistance from local authorities.

Meloni has come out strongly in favor of the Western alliance on Ukraine on several occasions, with promises to increase defense spending.

CEO Alessandro Profumo said on July 28 that the public defense group was working to reach an agreement for the sale of its OTO Melara gun-making unit and its Wass naval torpedo unit, but needed a new one. government in Rome to be able to finalize any potential agreement.

Like the CEOs of Eni and Enel, Profumo’s mandate is up for renewal next year.

Brothers of Italy has called for a renationalisation of the telecommunications group as part of plans to create a single broadband network in Italy by combining TIM’s fixed network with that of its public competitor Open Fiber.

This goes against TIM CEO Pietro Labriola’s strategy to sell TIM’s network to state lender CDP to focus on services.

Brothers of Italy welcomed CDP’s decision to wait for the elections before filing its non-binding bid for TIM’s network.

State broadcaster RAI has frozen talks on a potential deal to combine its Rai Way broadcast tower unit with rival EiTowers, part-owned by Italy’s top commercial broadcaster MFE, until after the election, it said. sources.

On August 31, Italy selected a group led by US private equity fund Certares, backed by Air France-KLM and Delta Air Lines Inc, for exclusive talks on buying a majority stake in the carrier. ITA Airways flagship.

Brothers of Italy asked that the new government be authorized to take a final decision on the ITA.

(Compiled by Alessandro Parodi, Enrico Sciacovelli and Luca Fratangelo, editing by Susan Fenton)

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