Italy Revamps Golden Power Rules, Aligns with EU on Finance

Rome is changing the rules of the Golden Power, a tool designed to protect strategic Italian assets. A significant change is being introduced: for operations involving banks, insurance companies, and the financial sector, the State will not be able to intervene before the relevant European authorities have spoken.

New Regulations for Golden Power

With an amendment to the Transition 5.0 decree, the government stipulates that the State's special powers will only come into play after the European Central Bank has assessed the prudential profiles and the European Commission has assessed the competitive ones. Until then, national procedures remain suspended. This move sends a clear political signal: the Golden Power remains active, but its exercise will be more coordinated with Brussels, thus reducing potential friction on the extensive use of the instrument in large market operations.

Scope of the Golden Power

The new regulatory framework also clarifies the scope of the Golden Power, which does not shrink: it remains valid for non-EU entities and for operations within the Union, including those between Italian operators, when the acquisition involves stable control of strategic companies. Among the official criteria, national economic and financial security is now also included, alongside public order and safety, but only in cases where there is no sufficient European discipline.

Minister Giorgetti's Defense

The Minister of Economy, Giancarlo Giorgetti, has strenuously defended this principle in talks with Brussels, stressing that economic and financial security is fully within the scope of national security.

Unicredit-Bpm Case

Symbolic of the tensions between national powers and European rules was the intervention on the Unicredit-Bpm dossier: the Italian executive imposed stringent conditions that effectively forced the bank to withdraw the offer, despite the preliminary approval of the EU Commission.

Italy's Response to EU Infringement Procedure

Rome has already shown openness to changes to find a way out of the EU infringement procedure, while reiterating the State's right to protect national interests. It is unclear whether Italy will accept any requests from Brussels to annul the conditions or whether it will challenge the decision in court: an unfavorable ruling could expose the State to claims for damages worth billions of euros.

Similar Actions in Spain

The Italian case is not isolated. In Spain, the government also intervened in the Bbva-Sabadell merger, imposing political constraints and time limitations that effectively slow down the operation. Here too, Brussels had to intervene, opening an infringement procedure for alleged violation of the ECB's competences and EU rules on bank mergers.

These episodes show how, throughout Europe, governments like to remember their presence in major strategic affairs. Italy is now trying to do so with greater discretion, coordinating with Brussels, without completely renouncing its role as guardian of its most sensitive assets.

Key Aspects of Italy's Golden Power Reform

Here's a breakdown of the key changes to Italy's Golden Power regulations:

Comparison of Intervention Procedures

A comparison of intervention procedures in Italy and Spain:

Impact on Financial Institutions

The table below outlines the potential impacts on financial institutions:

EU's Role in National Security Matters

The following table illustrates the EU's role in national security matters:

Strategic Sectors Under Golden Power

List of strategic sectors typically under Golden Power regulations:

Timeline of Key Events

Here's a timeline of key events related to the Golden Power and EU interventions: