Golden power, EU opens infringement proceedings against Italy
The challenge to the use of the law in the financial sphere: 'The Italian rule overlaps with the exclusive competence of the ECB'
The European Commission opens infringement proceedings against Italy over the use of golden power by calling on it to comply with EU banking rules. The European Commission, it is reported, decided today to open infringement proceedings by sending a letter of formal notice to Italy for non-compliance with the Single Supervisory Mechanism Regulation, the Capital Requirements Directive and Articles 49 and 63 of the Treaty on the Functioning of the European Union.
The objections
The Commission 'expressed concern' about the so-called 'Golden Powers' legislation, which gives the Italian government broad prerogatives to examine, block or impose conditions on corporate transactions in the banking sector.
"Although aimed at protecting national security and public order" the golden power regulation "as applied by the Italian authorities, risks allowing unjustified interventions for economic reasons, undermining the principles of freedom of establishment and free movement of capital in the single market. Moreover, the Italian regulation overlaps with the exclusive competences of the European Central Bank within the Single Supervisory Mechanism". So writes the EU Commission, formalising the opening of infringement proceedings against Italy for its use of golden power on bank mergers.
Giorgetti: a proposal soon
"The commission raises objections to the so-called Golden Power rule, which was reformed in 2022 under the Draghi government. On the basis of the judgement we will respond to the objections raised in the competent fora. In a constructive and cooperative spirit we will make a regulatory proposal that will provide clarity and overcome the objections. We are convinced that it will allow for a shared framework of competences,' replied Economy Minister Giancarlo Giorgetti with respect to the opening of the infringement procedure on the golden power regulation.
The UniCredit-BancoBpm case
Brussels disputes the use of golden power in relation to the Ops launched by Unicredit on BancoBpm, then abandoned by the bidder due to the conditions imposed by the executive. A pilot, an informal EU dialogue procedure between the EU executive and the member state, has been open on the case for months. Financial Services Commissioner Maria Luìs Albuquerque has been working hard on the dossier in recent weeks: in Luxembourg last month, she made it clear that an infringement procedure against Italy would be almost inevitable in the absence of significant steps on the part of the Italian government. Economy Minister Giancarlo Giorgetti had replied that financial security is a matter of exclusive national competence. In any case, the formal notice comes several months after Unicredit dropped its offer on Banco Bpm: CEO Andrea Orcel recently ruled out the possibility of it being reopened.
