EU pushes Italy for tighter rules on “golden powers” in banking

The European Commission is pressing Italy to further revise its golden power legislation after earlier reforms failed to ease EU concerns that Rome’s oversight of banking mergers may breach EU rules.

The dispute emerged after UniCredit, Italy’s second-largest bank, blamed government intervention for abandoning its attempted takeover of Banco BPM last year. Brussels had issued a formal warning in November, saying Italy’s golden powers grant excessive government control to block or impose conditions on financial sector transactions, News.Az reports, citing Reuters.

Earlier this year, Italy amended the law to require the government to wait for EU decisions on “prudential and competition” issues before invoking golden powers in banking and insurance deals. However, Brussels says this is insufficient. The EU insists that government-set conditions cannot override approvals already granted by the European Central Bank or the Commission, except in exceptional national security cases.

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The Italian government maintains its right to protect strategic interests, while Brussels emphasizes that golden powers must follow clear, justified criteria to comply with EU rules. Critics say the legislation increases red tape, forcing companies to notify authorities of potential deals to avoid fines. Last year, Italy received 903 notifications under golden power rules, up 37% from 660 the previous year.

News.Az 

By Aysel Mammadzada