EU members should keep exclusive jurisdiction on national security, Italy PM says

ROME (Reuters) -Member states of the European Union must preserve exclusive jurisdiction on national security matters, the Italian prime minister said on Wednesday, as Rome faces scrutiny from Brussels over its use of special powers to shield strategic assets.

Italy is among countries within the bloc that have made extensive use of golden power legislation to protect sectors such as banking, defence and telecommunications.

Reuters reported this month that the EU was set to act against the government of Prime Minister Giorgia Meloni as part of a push against EU countries hampering bank consolidation in Europe.

Speaking about defence matters during an address to parliament ahead of an EU leaders summit this week, Meloni stressed that it was up to member states to decide on their security, echoing similar remarks by Economy Minister Giancarlo Giorgetti this month.

"It is, and must remain, the member states who are the decision-makers in this process," Meloni said.

The comments came after European Commissioner for Financial Services Maria Luis Albuquerque told newspaper Corriere della Sera that she will be in Rome on Thursday and will probably hold talks with Giorgetti.

In July, Italy's second-biggest bank, UniCredit, withdrew its offer for smaller rival Banco BPM blaming government intervention for scuppering the 15 billion-euro ($17.5 billion) transaction.

The EU will order Italy to withdraw the terms set by Rome to clear UniCredit's failed bid, while challenging the overall golden power legislation through a separate infringement procedure, sources have said.

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(Reporting by Angelo Amante, editing by Ed Osmond)