ROME, Jan 15 (Reuters) - Italy has no intention of reinforcing its "golden power" legislation to interfere in mergers and acquisitions in the financial sector, announced Economy Minister Giancarlo Giorgetti on Wednesday.
The golden power regulations, created at the European Union level to ward off unwelcome non-EU buyers, were broadened amid the COVID-19 crisis to protect companies considered strategic as their values plummeted. Some countries, including Italy, have utilized this legislation in the banking industry.
Giorgetti dismissed rumors in the Italian media regarding a decree that would enhance the golden powers to grant the government more influence in UniCredit's unsolicited bid for Banco BPM.
"There is no decree," he confirmed to journalists at the parliament.
UniCredit's move on Banco BPM disrupted Rome's efforts to facilitate a merger between BPM and state-supported Monte dei Paschi di Siena to establish a contender against UniCredit and Intesa Sanpaolo.
Giorgetti disclosed that the government is still awaiting UniCredit to announce its proposed acquisition so that Italy can undertake a review according to the golden power law.
"We are waiting for them to notify the operation," he explained.
Under the golden powers, the Italian government holds authority over any decision, action, or transaction implicating a company possessing strategic assets that would lead to changes in ownership, control, or access to the assets, such as mergers.
However, practically speaking, Rome must intervene, as EU treaties uphold the free movement of capital within the bloc, as per sources previously cited by Reuters.
Prime Minister Giorgia Meloni's administration could seek assurances to ensure services to customers and safeguard employment.
Golden powers align with the EU's framework for screening foreign direct investments (FDI), designed to mitigate any risks to security and public order that could extend beyond the member state receiving the investment to other states.
The former EU Commission had proposed revising existing regulations to guarantee all member states have FDI screening mechanisms with a standardized set of evaluation criteria, particularly for investments made by foreign-owned EU entities.
With a new Commission now in place, a fresh proposal must be drafted. EU authorities are presently reassessing the framework, and an unnamed government official stated that Rome is keen to understand the potential changes, citing the sensitive nature of the topic.