BRUSSELS (Reuters) -The European Commission on Friday issued a formal warning to Italy’s government that its so-called ‘golden power’ measures on takeover deals could breach EU law.
These Italian government measures are aimed at safeguarding the national interest in strategic sectors such as defence and telecommunications. Italy is one of a number of EU countries which have also applied that legislation to the banking sector.
“The Commission has raised concerns over the so-called ‘Golden Powers’ legislation, which grants the Italian government broad prerogatives to review, block or impose conditions on corporate transactions in the banking sector,” the EU Commission said in a statement.
(Reporting by Sudip Kar-GuptaEditing by Bart Meijer)
