Nationalising Italy's Ilva steel plant would cause trouble with EU - Deputy Economy Minister

FILE PHOTO: The Ilva steel plant is seen in Taranto, Italy, November 11, 2019. REUTERS/Ciro De Luca

ROME (Reuters) - Nationalising the troubled Ilva steel plant would create problems with the European Commission, and the government should work on a "market solution" if ArcelorMittal MT.AS pulls out of a contract to take over the site, Italy's Deputy Economy Minister Antonio Misiani said on Tuesday.

ArcelorMittal said last week it was withdrawing from a 2018 deal to acquire Ilva’s site in the southern city of Taranto, blaming its decision on a government move to scrap immunity from prosecution over environmental damage in the area.

“Nationalisation would create problems with the European Commission...we have to look for a market solution”, Misiani said in a radio interview with RAI.

Reporting by Francesca Piscioneri, editing by James Mackenzie