InfoAnda - Italy's Sardinia struggles to leave state aid behind |

Pakistanis angry over detentions in Times Sq. case
Monday, May 24, 2010
ISLAMABAD – Relatives of three men detained by Pakistan for alleged links to the suspect in the attempted Times Square bombing say the men are innocent.
They

Taiwan denies boycotting Australian film festival
Thursday, August 6, 2009

AFP - Thursday, August 6TAIPEI (AFP) - - Taiwan's Beijing-friendly government on Wednesday denied boycotting an Australian film festival amid a row over the e

Merkel's support dips, regional ally resigns International
Thursday, September 3, 2009

By Sarah Marsh and Noah Barkin

BERLIN (Reuters) - Chancellor Angela Merkel suffered a double blow on Thursday as a senior party ally in east German

Minister seeks closure of anti-Berlusconi websites
Wednesday, December 16, 2009
ROME (AFP) - – The Italian government moved Tuesday to close down Internet sites encouraging further violence against Prime Minister Silvio Berlusconi, who

Asian markets mixed after Wall Street rally
Wednesday, March 18, 2009

By ELAINE KURTENBACH,AP Business Writer AP - Wednesday, March 18SHANGHAI - Asia's stock market rally seemed to be running out of steam Wednesday, despite an

Brown tells Mugabe: Enough is enough | International | | 6 December 2008
Lawmakers: US must enforce assault-gun import ban | 19 February 2009
Party's over as troops descend on Bangkok red-light district | 21 April 2010

All Blacks coach Henry eyes Grand Slam | 23 November 2008

Forum Views () Forum Replies ()

Read more with google mobile : Italy's Sardinia struggles to leave state aid behind |

Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Aerospace & Defense Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Campaign Polling Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Nader Mousavizadeh Lucy P. Marcus David Cay Johnston Bethany McLean Anatole Kaletsky Reihan Salam Edward Hadas Hugo Dixon Ian Bremmer Lawrence Summers Susan Glasser The Great Debate Steven Brill Jack & Suzy Welch Frederick Kempe Christopher Papagianis Mark Leonard Breakingviews Equities Credit Private Equity M&A Macro & Markets Politics Breakingviews Video Money Money Home Tax Break Lipper Awards 2012 Global Investing MuniLand Unstructured Finance Linda Stern Mark Miller John Wasik James Saft Analyst Research Alerts Watchlist Portfolio Stock Screener Fund Screener Personal Finance Video Money Clip Investing 201 Life Health Sports Arts Faithworld Business Traveler Entertainment Oddly Enough Lifestyle Video Pictures Pictures Home Reuters Photographers Full Focus Video Reuters TV Reuters News Article Comments (0) Slideshow Full Focus Editor's choice Our best photos from the last 24 hours. Full Article Images of August Follow Reuters Facebook Twitter RSS YouTube Read UPDATE 6-In New York, defiant Ahmadinejad says Israel will be 'eliminated' 24 Sep 2012 Japan fires water cannon to turn away Taiwan boats 1:07am EDT Obama offers himself up as 'eye candy' on 'The View' 24 Sep 2012 China carrier a show of force as Japan tension festers 2:33am EDT In New York, defiant Ahmadinejad says Israel will be "eliminated" | 24 Sep 2012 Discussed 276 New video shows Romney saying Palestinians don’t want peace 112 Egypt Salafi urges U.N. to criminalize contempt of Islam 94 Romney paid $1.9 million in taxes in 2011: campaign Sponsored Links Pictures Reuters Photojournalism Our day's top images, in-depth photo essays and offbeat slices of life. See the best of Reuters photography. See more | Photo caption Communism school A look inside China's Communist leadership academy. Slideshow Disputed islands Protests break out over disputed islands in the East China Sea. Slideshow Italy's Sardinia struggles to leave state aid behind Tweet Share this Email Print Related News Exclusive: Japan, Thailand race to rescue of Myanmar's struggling Dawei Fri, Sep 21 2012 Glencore offer for Alcoa Italy plant expected soon Wed, Sep 19 2012 Japan aims to abandon nuclear power by 2030s Fri, Sep 14 2012 Alcoa workers stage protest to slow down plant closure Thu, Sep 13 2012 Alcoa Italy workers clash with police over jobs Mon, Sep 10 2012 Analysis & Opinion Spanish rescue could cause collateral damage for Italy For Italy, crisis freedom is almost within reach Related Topics World » Italy » 1 of 9. A Sardinian miner closes a gate during a protest 400 metres (437 yards) underground blocking the entrance of the Carbosulcis mine in Carbonia, west of Cagliari August 31, 2012. Credit: Reuters/Alessandro Bianchi By Lisa Jucca INSIDE THE CARBOSULCIS MINE, Italy | Tue Sep 25, 2012 3:34am EDT INSIDE THE CARBOSULCIS MINE, Italy (Reuters) - Four hundred meters below the surface dozens of miners risk their lives at Sardinia's Carbosulcis, Italy's only coal pit, digging low-quality carbon that no-one wants to buy. In nearby Portovesme, workers at the country's largest aluminum smelter are fighting for their jobs after high energy bills, tight EU regulation and falling aluminum prices prompted U.S. commodity giant Alcoa to leave Italy. With more than 1,000 jobs at risk, the industrial crisis hitting the impoverished Mediterranean island of Sardinia is a political hot potato for technocrat Prime Minister Mario Monti as he fights to keep costs down and contain Italy's high debt. A protest by Sardinian workers in Rome this month turned violent and the government is wary of letting tensions rise to boiling point in the run-up to general elections in the spring. In both cases the solution appears to be an old Italian remedy for its poor southern regions: the state will help. "This is a whole system that has gone belly up: the mine, the aluminum, everything," said a government source with direct knowledge of the situation. "The state must put in the money because Sardinia cannot produce it. These industries have not led to the creation of a genuine business landscape and the coal is rubbish. But we cannot let people starve." The crisis that is engulfing the island, and in particular the south-western Sulcis area where the smelter and the mine are based, has reopened the debate about whether it makes sense to keep certain industrial sites in southern Italy on life support. Last year, carmaker Fiat caused a stir when it shut its Sicilian Termini Imerese plant citing the high costs of transporting goods in and out the island. And in Puglia, steel-maker ILVA is at risk of being shut down unless it can find a way to stop spitting its polluting fumes. Despite repeated top-down attempts to develop industrial activities and create growth, the unemployment rate in the southern regions of Sicily, Sardinia, Campania, Calabria, Puglia and Basilicata is, at 17 percent, more than twice the jobless rate of Italy's wealthier north, ISTAT data show. In Sardinia's poor Sulcis region, more than half of the active population is either looking for a job or has stopped looking for one, says local councilor Alberto Pili. "Italy is paying the consequences of having chosen to use the funds of the Marshall Plan to launch heavy industry in the south in the aftermath of World War Two," said Davide Tabarelli, head of specialized energy think-tank Nomisma Energia. "It was the quickest way to bring development there. This is our original sin. That money looked like a godsend." With a population of 1.6 million, Sardinia makes up for around two percent of Italy's gross domestic product. AUTARCHIC DREAM Fascist dictator Benito Mussolini, struggling under an international embargo, was the first to encourage large-scale use of Sardinia's coal and in 1938 even founded a miners' town. He named it Carbonia, Latin for 'land of coal'. The post-War Italian state made another big industrial push in the late 1960s and locals were happy to swap a life of rural hardship with the security of a regularly paid job. "When I was hired, I thought I had hit the jackpot," said 45-year old Giuliana Porcu, a safety official who has spent 25 years inspecting the pitch-black tunnels of the Carbosulcis mine and is the daughter of a miner. Even though the Carbosulcis coal is too high in sulfur to be used at Italian power plants, an exemption allows the coal to be burnt at the giant Enel plant of Portovesme which in turns gives energy to the smelter and the surroundings. At the peak of its glory, 10,000 sons of fishermen and sheep herders used to work in Portovesme compared to 3,000 today. Two generations later, this industry threatens to leave behind little more than a forest of chimneys towering against Sardinia's deep-blue sea. The desolate landscape surrounding the Portovesme site contrasts with the clusters of factories and warehouses that dot Italy's northern regions. While Italy's north enjoys a dense network of railways and highways are well developed, Sardinian roads are poor and the harbor of Portovesme is too small for large container ships. ENERGY ISSUE Italian power prices, often between 30 and 50 percent higher than the EU average, are a big deterrent for anyone wanting to produce primary aluminum due to the immense energy required. With Alcoa set to leave Italy, the government is rushing to find a buyer for the smelter, which produces around 8 percent of Italy's aluminum needs. Rome hopes to lure Switzerland-based commodities giant Glencore, which already operates a nearby zinc and lead plant, by offering to keep energy prices at around 35-37 euros per Megawatt Hour for up to 15 years. But the actual cost of power is around 70 euros/Mwr, so the difference will be met by taxpayers through their energy bills, government officials told Reuters. This would effectively prolong the artificially low energy regime that had attracted Alcoa and other foreign investors to Italy during a privatization drive in the mid-1990s. "The truth is that the Italian energy system is structurally weak. We do not have sufficient hydroelectric power and the system is overdependent on subsidies of all kind," said Pili. Switching to aluminum recycling, a widespread and much cheaper option in terms of energy needs, is not an option currently under consideration, government sources said. While Rome rushes to save the smelter, Carbosulcis' boss Mario Porcu is pushing for a daring project that envisages storing polluting carbon fumes 1,000 meters under the surface. But with investments estimated at 1.5 billion euros, the project is hardly palatable for Rome as the euro zone crisis forces it to contain its 2 trillion euro debt mountain. Porcu says some of the 6-billion-euro annual subsidies the state is pumping into renewable energy such as solar power could be diverted to support the project: "This is not meant to save the mine, but to develop technology." With the mine likely to be closed, the government is working on a state-funded project that would foster tourism and the creation of small companies in the region. But fostering small businesses in an area scarcely populated and badly connected to the mainland has proved difficult, with only nine of 22 business projects partially financed by the Sulcis province still standing. A conversion to tourism, thriving in other parts of Sardinia thanks to its pristine beaches, may not be easy nor quick as the area is heavily polluted. Tourism would also not guarantee a big rise in jobs nor help develop new technology. "We are not married to aluminum. But with tourism alone, we cannot survive," said Alcoa worker Lorenzo Fenu. (Editing by Anna Willard) World Italy Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter Facebook LinkedIn RSS Podcast Newsletters Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

Other News on Tuesday, 25 September 2012
Libyan government puts army in charge of Benghazi militias |
Court paves way for UK-based cleric's extradition to U.S. |
Yemeni intelligence official shot dead in Sanaa |
Nigeria military says kills 35 Boko Haram Islamists |
Mexico's Ferrari urges U.S. not to tear up tomato pact |
Pakistan's top court struggles to deliver justice |
Wang Yang: reformist credentials tested by Chinese system |
G20 aides say central banks' fix not enough
U.S. clears path for more sanctions on Iran oil deals |
Google shares hit record high, find favor on Street |
Toys R Us sued over kids tablet trade secrets |
Schwarzenegger memoir includes failures over love child |
Mandy Patinkin thrilled to be part of Emmy winner Homeland |
ABC draws more viewers to Emmy awards broadcast |
Bollywood's Aishwarya Rai Bachchan named U.N. HIV/AIDS envoy |
UK leader Cameron to appear on David Letterman |
Iran to boycott 2013 Oscar over anti-Islamic film: minister |
China carrier a show of force as Japan tension festers |
Clinton reassures Egypt's Mursi on U.S. assistance |
Bombs blow up at security site in Damascus: rebels |
Syrian mortar bombs land in Israeli orchard |
Colombian peace deal would not end all violence: report |
Italy's Sardinia struggles to leave state aid behind |
Japan PM may tap senior politician Okada as finance minister: media |
Kuwait cordons off court ahead of pivotal electoral law ruling |
Clinton offers more U.S. help as Libya battles militias |
Google says Maps not waiting in wings for iPhone 5 |
China factory unrest a fresh headache for Foxconn |
Nokia unveils two new mid-range cellphones |
Google starts Nexus 7 tablet, content sales in Japan |
Olympus, former executives plead guilty in fraud trial |
Malaysia court puts Lynas rare earths license on hold: activists |
Kiddie tablets and other tech toys top Toy Insider gift list |
French government asks Facebook to explain data glitch |
White House said to plan executive order on cybersecurity |
Chris Brown tests positive for marijuana while on probation |
Obama offers himself up as eye candy on The View |
Gangnam Style hit doubles value of Psy's father's stock |
Actress Bonnie Franklin diagnosed with pancreatic cancer |
U.S. will 'do what we must' on Iran, Ban Ki-moon opposes threats |
Syrian children speak of beatings, burnings, electric shocks |
Exclusive: Clinton presses Rwanda, DRC leaders on border crisis |
Yemenis paint disappeared activists on Sanaa streets |
Hundreds of Syrian refugees riot in Jordanian camp |
Door for Israeli-Palestinian peace may be closing: U.N. |
Analysis: Clock ticking on French fracking veto |
Attack on military vehicle kills 7 soldiers in east Turkey |
Barnes & Noble to launch video service for Nook |
RIM says carriers impressed with its new BB10 devices |
Former principal sues Pantheon Ventures for discrimination |
U.S. tech firm ServiceSource to expand in Britain |
Sharp to win bank nod for $2.7 billion bailout as early as Thursday: source |
Teliasonera to start Yoigo sale soon -sources |
RIM faced with another brutal quarter; focus on cash pile |
Psy vows topless show if Gangnam-style reaches No. 1 |
Actress Helen Mirren to receive European film award |
Milan fashion opts for light, timeless and wearable |
World Chefs: Pham follows instinct on forage, career |
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights

USD EUR - 1 year graph		BlogMeter 1.01