Brussels warns Italy over 'golden power', may be a breach of EU law

The European Commission is about to issue a formal warning to Italy over its so-called "golden rule" rules, which allow the state to interfere in strategic sectors such as defence, telecoms and banking.

According to the Financial Times, Brussels is preparing a notification letter - the first step in an EU infringement procedure. The Commission suspects Italy's legislation may contravene single market rules.

Rome, like other EU states, is using the power to protect national interests, but Brussels sees it as a potential obstacle to the consolidation of the banking sector in Europe.

Economy Minister Giancarlo Giorgetti had earlier announced that he would contact the European Commission to ask for clarification on the measures.

(reuters, swag)