European Commission Warns Italy Over UniCredit Banco BPM Merger Conditions

The European Commission has issued a preliminary warning to Italy, stating that conditions imposed by the Italian government on UniCredit's proposed takeover of Banco BPM may violate EU merger regulations and other provisions of European law. Italy's use of its 'Golden Power' to impose commitments on UniCredit—such as maintaining certain loan-to-deposit ratios and project finance portfolios—has been criticized for potentially lacking sufficient justification and possibly interfering with the free movement of capital and the European Central Bank's oversight. The Commission emphasized that any national measures must be appropriate, proportionate, non-discriminatory, and compatible with EU law, while also being subject to Commission review to avoid fragmentation of the Single Market. This clash highlights ongoing tensions between Brussels and Rome over national sovereignty versus EU regulatory oversight on strategic corporate transactions. The outcome of this dispute could have significant implications for future cross-border mergers and the application of national powers within the EU.