Navigating National Interest: Italy’s Evolving Stance on Strategic Assets

Italy’s Minister of Economy, Giancarlo Giorgetti, recently addressed the nation’s approach to the “Golden Power” during discussions at the International Monetary Fund (IMF) and World Bank spring meetings in Washington D.C. The Golden Power refers to the government’s authority to intervene in corporate activities deemed crucial to national interests, particularly in strategic sectors like banking and finance.

Giorgetti emphasized the existing legal framework, established in 2022 under the Draghi government, which mandates governmental evaluation of national interests.He clarified that this evaluation falls outside the purview of the European Central Bank (ECB) or the Directorate-General for Competition. This framework allows Italy to safeguard key industries from perhaps adverse foreign influence or control.

A “Virile” National Interest: comparing Approaches with the United States

When questioned about potential government adjustments regarding meaningful banking and financial transactions within Italy, Giorgetti expressed a degree of admiration for the United States’ approach to national interest. He suggested that the U.S. embodies a more assertive, or virile, interpretation of national interest compared to Italy’s, which he characterized as more protracted and nuanced.

…envy the United States a little, where the national interest responds to a fairly virile concept, while in Italy we have a concept of national interest a little longer.

Giancarlo Giorgetti, Minister of Economy

This comparison highlights a broader debate about the appropriate level of government intervention in the economy, particularly in a globalized world. While some argue for a more hands-off approach to foster competition and innovation, others advocate for stronger protections to safeguard national security and economic stability.The U.S., for example, has recently increased scrutiny of foreign investments in sectors like technology and infrastructure, citing national security concerns. According to a report by the Committee on Foreign Investment in the United States (CFIUS), reviews of transactions involving foreign entities have increased by over 50% in the last five years.

The future of Golden Power in Italy: Balancing Protection and Openness

The Minister’s comments suggest a potential re-evaluation of how Italy defines and applies its golden Power regulations. This comes at a time of significant change within the Italian banking sector, with ongoing mergers and acquisitions potentially reshaping the financial landscape. The challenge for the Italian government lies in striking a balance between protecting strategic national assets and maintaining an open and attractive environment for foreign investment. The decisions made in the coming months will have a significant impact on the future of Italy’s economy and its role in the global financial system.