By Giuseppe Fonte
ROME (Reuters) -Italy has told the European Commission it is ready to make some changes to its so-called “golden power” rules aimed at shielding companies in strategic sectors, sources said, as the EU prepares disciplinary steps over the matter.
Brussels is set to act against the way Rome uses the golden powers to set conditions on bank mergers, as part of a push to remove obstacles to the creation of larger financial groups across Europe.
Italian and EU officials are already negotiating over how Rome can amend its legislation without radically distorting it, two sources with direct knowledge of the talks said, speaking on condition of anonymity because negotiations are private.
Rome’s prime concern is to maintain the principle, which has been confirmed by some Italian court rulings, that the government has the right to defend its national interest in business matters.
Economy Minister Giancarlo Giorgetti and the EU Commissioner for Financial Services discussed the issue last week in Rome, the sources said.
An EU spokesperson declined to comment.
Reuters reported this month that the EU was preparing to order Italy to withdraw a government decree that set conditions on UniCredit’s bid for smaller lender Banco BPM.
The bid eventually failed, with UniCredit in July blaming the government’s intervention for its decision to drop the takeover. Among several prescriptions, Italy told UniCredit it had to halt activities in Russia by early 2026.
Brussels also wants to challenge Rome’s overall golden power legislation through a separate infringement procedure to be started through a letter of formal notice.
The college of EU commissioners is expected to make a decision on the dual-track move against Italy around November 12-13.
In exchanges with Rome, the Commission said significant corporate mergers should be vetted at the EU level to prevent member states from taking unjustified measures, the sources said.
While the government is willing to amend its overall golden power legislation, it remains to be seen whether it will comply with the request to drop the terms set for the UniCredit-BPM deal, or else challenge the EU move before a judge.
Italy told the EU the legitimacy of these conditions was largely upheld by a July court ruling which confirmed the key request for UniCredit to exit Russia, the sources added.
A decision stating that Rome’s prescriptions are unlawful would potentially expose the state to billions of euros in damage claims by UniCredit, Reuters has previously reported.
(Editing by Gavin Jones)
