EC Questions Italian Government’s Use of ‘Golden Powers’ in UniCredit Takeover

Brussels: The European Commission has expressed concerns over the Italian government’s application of ‘golden powers’ regarding UniCredit’s bid to acquire Banco BPM. The Commission has sent a letter to Italy, highlighting potential violations of EU regulations.

According to Ansa News Agency, the letter addressed a decree from Italy’s Premier’s Office dated April 18, 2025. The decree imposed specific conditions on the merger, potentially contravening Article 21 of the EU Merger Regulation and other EU laws. The Italian government utilized its golden powers to impose stipulations on phasing out UniCredit’s Russian operations, altering loan-to-deposit ratios, and managing investments in Anima Holding, a fund manager recently acquired by BPM, in response to a hostile takeover attempt.

UniCredit challenged the decree, and the Lazio regional administrative court (TAR) partially supported their appeal over the weekend. European Commission spokesman Thomas Regnier explained that while Member States can impose conditions on mergers for legitimate interests or public safety risks, the Commission doubts the Italian decree meets the criteria outlined in Article 21 of the regulation.

Deputy Premier and Transport Minister Matteo Salvini criticized the European Commission’s involvement, suggesting that the EU should focus on more pressing issues, such as US relations, rather than intervening in Italian domestic matters. Salvini emphasized the importance of Italy’s autonomy in regulating its banking and credit systems, which he described as strategic assets for the country.

The Italian Premier’s office responded by stating that the government will address the Commission’s requests for clarification, maintaining that the actions taken were legitimate according to administrative judges. The government expressed a willingness to continue discussions in a “collaborative and constructive spirit.”