The Istituto per la Ricostruzione Industriale
(Italian: "Institute for Industrial Reconstruction", IRI) was an Italian public company set up by the fascist government
in 1933 to combat the effects of the global depression
on the Italian economy. Its function was to rescue floundering companies which could no longer afford to repay their creditors.
Although set up as a temporary measure, the IRI continued to run for as long Benito Mussolini
was in power. It was able to reorganise companies so that production was maintained. The main action of the IRI was to buy shares of failing companies from banks. In 1937 the IRI's powers were extended so that it could nationalise companies, although no effective nationalisation
were carried out. By 1939
the IRI controlled 20% of the Italian industry through government-linked companies
(GLCs), including Alfa Romeo
steel company (1934), integrated to IRI's Finsider
's holding; 75% of pig iron production
and 90% of the shipbuilding
industry. Also, by the late 1930s, the activities of this organisation led to the Italian state
owning a bigger share in the economy than in any other country except the USSR
Even long after World War II
, the IRI became one of the largest state conglomerates in Italy, owning many diverse businesses such as the autostrada
system, the airline Alitalia
and many banks and telecom companies.
It was disestablished in 2002.
- Vera Lutz, Italy: A Study in Economic Development, Oxford,......