The European Commission has launched infringement proceedings against Italy over its use of the country’s expansive “golden power” framework, escalating a long running dispute tied to the failed takeover attempt of Banco BPM by UniCredit. The move signals growing concern in Brussels that Rome’s increasingly assertive intervention in corporate mergers may violate EU single market rules.
Golden power laws allow Italy to block or impose conditions on acquisitions involving companies deemed strategic for national security. But Brussels argues that Italy’s current application of the rules goes beyond legitimate security concerns and now acts as a barrier to cross border investment, particularly within the banking sector where consolidation efforts have repeatedly stalled.
The dispute intensified after government intervention effectively shut down UniCredit’s interest in acquiring Banco BPM, one of Italy’s largest lenders. European officials say Rome’s decision making lacked transparency and disproportionately restricted a transaction that, under EU law, should fall within the free movement of capital.
Italian officials maintain that golden power is necessary to safeguard critical infrastructure and financial stability, especially in sectors vulnerable to foreign influence. They argue that the Commission’s interpretation risks undermining national sovereignty during a period of heightened geopolitical and economic sensitivity.
