EU demands Italy revise golden power rules for banks
Brussels is pushing Italy to further revise laws used to vet bank mergers. The EU claims current rules grant Rome excessive power over financial transactions.
The European Commission is increasing pressure on Italy to implement further reforms to its golden power legislation, following concerns that previous revisions have not sufficiently addressed regulatory overlaps in the banking sector. This ongoing dialogue between Brussels and Rome centers on the government's authority to vet and potentially block financial mergers, a power that officials in the European Union argue may infringe upon established market rules.
The tension surrounding these regulations intensified after UniCredit S.p.A. withdrew a takeover bid for Banco BPM S.p.A. last year, citing government intervention as a primary factor. In November, the Commission issued a formal warning, suggesting that Italy's special powers grant the state excessive discretion to interfere with strategic transactions in the financial and insurance industries.
