“Going once, going twice, sold!” Italy auctions off Holy Roman Emperor´s castle to combat public debt

Italy is auctioning off a grandiose 16-century castle built for Charles V Holy Roman Emperor to raise funds and combat the excessive public debt.

Italy auctions historic castle to fight increasing debt

The 16-century castle built for Charles V Holy Roman Emperor located near Naples made it on Italy´s list of 33 sites owned by the defence ministry to be sold in November 2024. The palatial residence was built between 1522 and 1543 and is deemed a masterpiece of military architecture, as well as being strategically important for Charles V, whose empire once extended across Germany, Austria, Spain, and Italy. 

Despite its significance, the castle has been long-neglected and requires major renovation, now appearing more like military barracks than an emperor´s residence. In the 19th century it was turned into a prison and has recently been used for the manufacture and storage of military explosives.

The news about the sale sparked FAI´s condemnation; Italy´s equivalent to the national trust, the FAI urged for the castle to be forwarded to UNESCO World Heritage for protection. “We should protect our cultural assets, they are vital,” said Dante Specchia, an architect leading the FAI´s Caserta branch.

Specchia argued; “Depriving the public of a jewel like the Charles V castle should not be debatable.” Yet, Georgia Meloni´s government thinks otherwise.

Italy´s ballooning debt; will auctions be enough?

Italy´s public debt now exceeds €2,8 trillion. In May this year, the IMF (International Monetary Fund) issued an official warning to Italy, emphasizing the need for decisive fiscal reforms to address the escalating public debt. The crisis has been fuelled by the consequences of the COVID-19 Pandemic and increasing energy prices.

The IMF released a forecast, revealing that Italy´s public debt will reach approximately 140 per cent of GDP in 2024 and will continue rising to 145 per cent. Since coming to power, Italian Prime Minister Giorgia Meloni led a policy shift by privatizing state assets to battle Italy´s debt, planning to sell stakes in key national entities including the post, Poste Italiane, railway company Ferrivie dello Stato and Italy´s largest petroleum company Eni. 

With these sales, Meloni aims to generate a cash influx of €20 billion by 2026. She has also emphasised the importance of selling the properties which are currently used by the army, air force and navy, which are reported to have a market value of €240 million but could see even more at auction. The Italian ministry noted that the properties would be sold under concession for 50 years and that it was looking for “proposals aimed at the redevelopment, enhancement and economic management of its real estate assets.”