Brussels is set to issue a formal warning to Italy over concerns that Rome’s expansive “golden power” rules may violate European Union law, according to the Financial Times. The rules, designed to protect Italy’s national interest in strategic sectors such as defense, telecommunications, and banking, allow the government to intervene in key corporate decisions. The European Commission’s “letter of notice” would mark the start of a formal infringement procedure, signaling potential legal action against Italy.
WHY IT MATTERS
Golden power laws are intended to safeguard strategic sectors, but Brussels sees them as potentially obstructing the EU’s single market rules, particularly regarding free competition and cross-border banking consolidation. The outcome could set a precedent for how EU member states balance national security with EU-wide economic integration, a growing tension in the bloc’s economic governance.
Italy’s government, led by Economy Minister Giancarlo Giorgetti, is directly affected, as are corporations in defense, telecommunications, and banking. The European Commission, particularly financial services chief Maria Luis Albuquerque, will oversee any disciplinary action. Other EU member states observing the dispute may adjust their own golden power legislation based on the Commission’s response, making this a test case for EU regulatory authority.
WHAT’S NEXT
Italy is expected to engage with Brussels to clarify the rules and potentially amend legislation to avoid escalation. If unresolved, the Commission could escalate the procedure, leading to fines or legal action at the European Court of Justice. The dispute highlights ongoing friction between national sovereignty and EU regulatory oversight, with broader implications for EU integration and cross-border business operations.
With information from Reuters.
