The following factors could affect Italian markets on Monday.

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).

For a complete list of diary events in Italy please click on .

PUBLIC FINANCES

The European Commission is set to grant Italy the “budget flexibility” it requested without opening an excessive deficit procedure due to Rome’s too-slow debt reduction, Corriere della Sera reported on Sunday. However, Brussels will ask Italy to ensure the deficit falls as planned to 1.8 percent of GDP next year which may require new budget measures worth more than 9 billion euros.

Italy’s Health Minister Beatrice Lorenzin said in an interview with la Repubblica on Sunday the country risked a “demographic apocalypse” in 10 years if current trends persisted. Lorenzin would like the next budget law to double the size of an incentive for newborns, the paper said. A government source said on Sunday doubling the incentive was just one possibility among several options.

Rome, Cabinet meeting (1500 GMT)

COMPANIES

TELECOM ITALIA

Italy’s biggest telecoms group more than doubled the cost cutting target in its business plan to 2018 after reporting a larger-than-expected 16 percent drop in first-quarter core profit, hit by one-offs and persistent weakness in its key Brazilian market.

Conference call on Q1 results and industrial plan update on Monday (0730 GMT).

BANCO POPOLARE -BANCA POPOLARE DI MILANO

The two banks present to analysts the business plan for the merger sealed in March when they agreed to create Italy’s third-largest banking group with 171 billion euros in assets (1230 GMT). News conference to follow. (1400 GMT)

The plan is expected to envisage 1,800 job cuts to be carried out through voluntary redundancies and the closure of 250 branches out of 2,500, several newspapers reported on Sunday. The job cut figure includes 500 layoffs already planned at Banco Popolare.

A meeting with the unions over the layoffs is expected on Tuesday morning, Libero reported on Sunday. The paper cited UILCA union Secretary General Massimo Masi saying that 1,800 cuts appeared “manageable”.

BANKS

Non-binding offers for the good assets of four small Italian banks that were rescued from bankruptcy in November have come mainly from private equity funds, the four lenders said in a statement on Friday.

The Bank of Italy will present to the European Central Bank on June 25 the accounts of the four banks, papers said on Saturday. To this end the banks have until May 20 to present their accounts.

A further 1.2 billion euros in writedowns will be needed over 5 years to relaunch the four rescued banks, Il Messaggero said on Saturday. The banks will post losses for the next two years and more capital may need to be injected by who buys them, the paper said. There are nine parties interested in buying, all of them foreign, it added.

Corriere della Sera said there were 12 non-binding offers, from 10 operators, for the banks, mainly foreign. But there is a mid-sized Italian bank and an insurance company in the running, it added.

CATTOLICA ASSICURAZIONI

The insurer said on Friday it had started examining the possibility of ending a partnership with Popolare di Vicenza as it was entitled to do based on the agreement after the bank shed its mutual status to become a joint-stock company. Cattolica said it would further discuss the issue with help from advisers and that Sept. 1 was the deadline to exercise the exit right.

VENETO BANCA IPO-VENE.MI

The Atlante rescue fund is discussing a sub-underwriting agreement with the consortium of 10 banks led by Banca IMI committed to subscribing Veneto Banca’s 1 billion euro share issue, Il Messaggero said on Saturday.

The bank’s newly-appointed board meets on Monday to confirm a plan the previous board had agreed with the European Central Bank for a 1-billion euro cash call and initial public offering.

(*) BANCA IFIS

According to Corriere Economia, it is interested in Interbanca, and a deal could be closed soon.

RCS MEDIAGROUP, CAIRO COMMUNICATIONS

Italian businessman Andrea Bonomi is considering an alternative bid for the Italian publisher to that launched by Cairo Communication, Il Sole 24 Ore reported on Sunday citing financial sources. (*) According to Il Giornale, Bonomi could present his offer on Monday.

AMPLIFON

The group said April was a positive month and confirmed its goal of higher revenues and profitability this year compared with 2015, Il Sole 24 Ore reported on Sunday.

FERRARI

Ferrari boss Sergio Marchionne dismissed speculation about Formula One team principal Maurizio Arrivabene’s future on Sunday and assured reporters that the Italian had his full support.

TREVI GROUP

Conference call on Q1 results (1400 GMT).

AMBROMOBILIARE

Capital increase starts; ends on June 3.

A.S. ROMA

Board meeting on Q3 results.

Trade ex-dividend: Banca Finnat of 0.010 euro per share; Boero Bartolomeo of 0.13 euro per share; Cembre of 0.46 euro per share; Credito Emiliano of 0.15 euro per share; Dea Capital of 0.12 euro per share; Fidia of 0.40 euro per share; First Capital of 0.04 euro per ordinary share; Frendy Energy of 0.0058 euro per ordinary share; Isagro of 0.025 euro per ordinary share and 0.030 euro per saving share; Massimo Zanetti of 0.09 euro per share; Rosetti Marino of 0.12 euro per share; TXT e-solutions of 0.25 euro per share.

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