By Giuseppe Fonte and Stephen Jewkes
ROME, March 22 (Reuters) - Italy is close to approving
measures to bolster the special powers it has over key
industries to ward off unwanted foreign interest, officials said
on Sunday.
The move reflects concerns in the ruling coalition
government that investors' appetites for strategic assets could
be whetted by collapsing share prices due to market turbulence
triggered by the coronavirus epidemic.
Since Feb. 23, when Rome imposed the first set of measures
to contain the coronavirus outbreak, Milan's all-share stock
index has fallen more than 35%.
On Saturday, Italy recorded a jump in deaths from COVID-19
of almost 800, taking the overall toll in the world's
hardest-hit country to almost 5,000.
"We are ready to apply a protective shield to defend Italian
strategic companies. We'll use any means necessary," said
cabinet undersecretary Riccardo Fraccaro, a prominent 5-Star
member.
Germany and Spain announced similar initiatives this week,
while France said it could nationalise big companies if
necessary.
The so-called golden powers give Rome the right to veto
stake building in strategic companies operating in the defence,
energy and telecoms industries, as well as key financial
infrastructure including the Milan Bourse and payment systems.
The government has already drafted a decree aimed at
strengthening its veto powers in these businesses, two sources
close to the matter told Reuters, asking not to be named because
of the sensitivity of the matter.
One source said the measures could be announced sometime in
the next two weeks.
Rome also plans to beef up its special powers for the whole
banking and insurance sector "in a broader decree expected to be
approved early in April," a government official added.
Influential parliamentary security committee (COPASIR) this
week urged the government to prepare a contingency plan to ward
off hostile takeovers of top lenders and insurers.
Committee members pointed to the risk that takeovers could
distance the country's lenders from their home turf, with
implications for the refinancing of Rome's 2.4 trillion euro
($2.57 trillion) debt.
The government owns controlling stakes in strategic
companies including oil giant Eni, utility Enel
, defence group Leonardo and power grid
operator Terna.
Rome also considers as a strategic asset the Milan bourse
because it controls the domestic government bond trading
platform MTS.
($1 = 0.9351 euros)
(Reporting by Giuseppe Fonte and Stephen Jewkes
Editing by Giselda Vagnoni and Frances Kerry)