Reuters cited Mr Matteo Renzi PM of Italy as saying that he would decide the future of the scandal-hit Ilva steel plant by Christmas, during a visit to the site at Taranto in southern Italy where he was challenged by protesters.

Mr Renzi said that “Privately owned Ilva, one of the largest employers in southern Italy with around 20,000 workers, was important for the whole country. There are talks in progress with companies willing to take over the company. I will come back to Taranto to resolve the issue by Christmas.”

Ilva, Europe's largest steel plant by output capacity, is at the centre of an environmental scandal which led the Italian government to place it under special administration last year.

Trade union sources have said that the world's largest steelmaker ArcelorMittal and India's JSW Steel have expressed interest in buying the plant, which industry body Federacciai says is currently losing between EUR 60 million to EUR 80 million per month.