Italy Tightens Strategic Foreign Investment Rules

Italy has become the latest in a series of European Union member states to tighten domestic legislation to give the national government greater powers of scrutiny over foreign acquisitions of strategic assets including defence and security companies. Rome formally adopted Legislative Decree No 64 on 11 July. It entered into force the following day...

Italy has become the latest in a series of European Union member states to tighten domestic legislation to give the national government greater powers of scrutiny over foreign acquisitions of strategic assets including defence and security companies.

Rome formally adopted Legislative Decree No 64 on 11 July. It entered into force the following day and is subject to parliamentary ratification by 10 September.

Decree 64 extends to 45 days the period during which the government may veto acquisitions involving defence and security companies; it is up from a previous window of 30 days.

The decree also extends government powers to object to defence company investments and acquisitions when non-EU entities acquire a percentage stake that is deemed to jeopardise national security.

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Source: www.janes.com