Italian banking sector strikes today
Italian banking sector trade unions are expected to carry out the first-ever strike at Borsa Italiana, the Milan stock exchange, in the last two working hours of the day.
Euronext, a major European stock exchange group, acquired Borsa Italiana in April 2021. This gave Euronext control over the MTS platform where Rome’s government bonds are traded, contributing to the tensions driving the current strike. The banking unions are concerned that Euronext has been divesting from Italy, fearing the loss of jobs and management autonomy. They want Italy to maintain its position as the decision-making center for the stock exchange’s strategic functions.
The protests will likely not continue for more than a few days. The Italian industry ministry will convene with the unions on July 3, and afterwards meet with Borsa representatives. Expect compromise, such as a moderate wage increase. An ongoing strike would only be harmful for Euronext, as Italy is now a crucial part of its revenue stream. If a satisfactory compromise is not reached, strikes will likely continue on a wider scale, which may be accompanied by a short-term decrease in investor confidence in the Italian market and an increase in stock price volatility.
