Published by Global Banking & Finance Review®
Posted on December 30, 2025
2 min readLast updated: January 20, 2026
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Italy revises golden power rules to align with EU, impacting financial M&A deals and cross-border banking consolidation.
By Giuseppe Fonte
ROME, Dec 30 (Reuters) - Italy plans to revise its golden power rules designed to shield strategic assets, deferring its own review of major financial-sector M&A deals until the European Commission and European Central Bank have completed their assessments, a document seen by Reuters showed on Tuesday.
With this move, the government aims to defuse a legal dispute with the EU Commission over Italy's use of golden powers to impose conditions on bank deals, which Brussels says breaches EU rules. The outcome could shape cross-border consolidation in Europe's fragmented banking sector.
The clash erupted after UniCredit, Italy's No. 2 bank, blamed government intervention for its decision to abandon a takeover bid for smaller lender Banco BPM.
Italy has signalled openness to changes to find a rapid way out of an EU infringement procedure, Reuters reported in October, while insisting on its right to protect national interests in business matters.
EU TO MAKE FIRST MOVE
The document, an amendment under discussion in parliament, says the government should wait for EU decisions on "prudential and competition" issues before invoking golden powers in deals involving banks and insurance companies.
Rome also intends to state that economic and financial security fall within the scope of national security, a principle strenuously defended by Economy Minister Giancarlo Giorgetti in talks with Brussels.
The EU Commission has challenged Italy's stance by arguing significant corporate mergers should be vetted at the EU level to prevent member states from taking unjustified measures.
In a separate proceeding, the EU is weighing whether to order Italy to withdraw the decree that set conditions on UniCredit's bid for BPM.
Among those conditions, Italy told UniCredit to exit Russia by early 2026 to ensure Banco BPM's savings did not benefit Moscow’s economy during its war on Ukraine.
While Rome is willing to revise its golden power framework, it is unclear whether it will comply with any EU demand to scrap the UniCredit-BPM terms, or challenge the move in court.
A ruling against Italy could expose the state to billions of euros in damages claims from UniCredit.
(Editing by Gavin Jones and Louise Heavens)
M&A stands for mergers and acquisitions, which are transactions in which the ownership of companies or their operating units is transferred or combined.
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and upholding EU treaties.
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