The Golden Power is the special power of the Italian government to limit or stop (i) foreign direct investments (“FDI”) and (ii) corporate transactions involving Italian strategic assets.

All transactions falling within the field of application of Golden Power must be reported in advance to the Italian Presidency of the Council of Ministers (the “Presidency”).

The Golden Power originally entered into force in 2012 and was limited to defense, national security, and infrastructure (transportation / energy / communications). It has recently been extended to additional strategic sectors (i.e., high technology, fintech, insurtech, etc.) following Law Decree 23/2020 and as a consequence of the Covid-19 pandemic.

Therefore, all foreign investors intending to carry out acquisitions in Italy within certain sensitive sectors are required to first consider any application of the Golden Power regime.

This contribution by Ughi e Nunziante offers useful guidelines for foreign investors to better understand the new legal framework.

For any help or additional clarification, please seek proper legal guidance.

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