In Italy, the periodic reshuffling of executive boards at major state-backed firms is known as the valzer delle poltrone, or “waltz of the armchairs.” This process occurs every three years before shareholder meetings, affecting companies such as Enel, Eni, and Leonardo. Earlier this year, Prime Minister Giorgia Meloni oversaw the replacement or reassignment of 112 executives within Italy’s public sector management ranks.
A similar administrative shift could arrive in Spain should Alberto Núñez Feijóo win the upcoming general election. The Popular Party (PP) platform, released this week, suggests a significant restructuring of the nation’s corporate landscape if the party secures the votes required to form a government.
Proposed Changes to Public Management
The PP manifesto includes 249 specific measures. The third proposal in the document explicitly addresses the selection process for leadership roles within state-owned companies.
The party states that managers of public enterprises will be selected based on experience, merit, and ability rather than political affiliation. Furthermore, the PP plans to conduct a comprehensive review of the state’s corporate holdings. The platform commits to divesting from any participations that do not serve an accredited public or strategic interest.
Potential Market Impact
The proposed policy signals a departure from current appointment practices. By emphasizing merit-based selection, the party aims to alter how the state manages its influence in the private sector. The commitment to sell off non-strategic assets suggests a potential reduction in the government’s direct involvement in various industries.
Why it matters: This policy shift could fundamentally reshape the relationship between the Spanish government and major corporations. For international investors and observers, the potential sale of state-owned assets and a move toward meritocratic appointments in public firms would signal a significant change in the country’s economic management and corporate governance approach.