The European Commission has opened an infringement procedure against Italy for the application of its “golden power” regime in the banking sector, warning that the measures may breach EU law and undermine the integrity of the Single Market.
In its decision, the Commission sent Italy a letter of formal notice (INFR(2025)2152) for failing to comply with the Single Supervisory Mechanism Regulation (Council Regulation (EU) No 1024/2013), the Capital Requirements Directive (Directive 2013/36/EU), and Articles 49 and 63 of the Treaty on the Functioning of the European Union, which guarantee freedom of establishment and the free movement of capital.
The Commission’s concerns focus on Italy’s Golden Powers legislation (Law Decree 21/2012, as subsequently expanded in 2021 and 2022), which grants the government broad authority to review, block or subject to conditions corporate transactions involving banks. Although the framework is presented as a tool to safeguard national security and public order, the Commission warns that its use in the financial sector risks enabling interventions based on economic rather than security-related considerations. Such practices, it argues, could distort the Single Market by creating barriers to cross-border investment and compromising legal certainty for financial institutions.
Brussels also stressed that the Italian regime overlaps with the exclusive competences of the European Central Bank under the Single Supervisory Mechanism, which is responsible for prudential oversight of significant banks within the euro area. The Commission underlined that national screening mechanisms must remain proportionate, transparent and strictly limited to situations where genuine security concerns arise.
Italy now has two months to reply to the letter of formal notice and address the issues identified. If the response is deemed insufficient, the Commission may escalate the procedure by issuing a reasoned opinion.