Italy accuses ArcelorMittal of blackmail over Ilva plant

Giuseppe Conte, Italy's prime minister, said he would not allow ArcelorMittal to abandon its acquisition of the troubled Ilva steel mill. The prime minister told reporters: "The agreement has been agreed and we are not going to back down, so the commitments will be respected."

Industry Minister Stefano Patuanelli accused ArcelorMittal of trying to blackmail the country. He said: “We will not allow ArcelorMittal to blackmail the government by threatening more than 5,000 job cuts. Obligations must be met. "

He suggested that the government might be ready to issue a decree that spells out the existing legal guarantees that are already provided for by the Italian constitution. He said: "We can consider a rule that explains this principle, which is already enshrined in our legal system, without developing any special new rules for ArcelorMittal."

ArcelorMittal announced on Monday that it is abandoning the deal to buy the Ilva site in the southern city of Taranto. after Rome reneged on a promise to grant immunity from prosecution for environmental damage in the area.

A meeting between the Conte government and ArcelorMittal to discuss this issue, originally scheduled for Tuesday, has been postponed to Wednesday

Ilva employs 10,700 people throughout Italy, including 8,000 workers in Taranto. Thousands of jobs are indirectly dependent on the factory, one of the declining numbers of major industrial employers remaining in the south.