Italy remains a highly attractive destination for foreign investors, offering opportunities in technology, infrastructure, manufacturing, and energy. However, anyone planning an acquisition, joint venture, or significant investment must navigate a critical compliance layer: the Golden Power regime.
This set of rules allows the Italian government to screen and potentially block or place conditions on foreign investments in sectors deemed strategic to national interests. Understanding how it works is essential to avoiding delays, penalties, or failed deals.
What is the Golden Power and why does it matter?
The Golden Power is a legal mechanism that gives the Italian government special authority over transactions involving strategic industries. Originally introduced to protect national defense assets, the scope has since expanded significantly.
The objective is to safeguard national security and defense, critical infrastructure such as telecom, energy, and logistics, as well as emerging technologies like AI, robotics, and semiconductors. It also includes the protection of sensitive data and cloud computing.
Foreign Direct Investments (FDIs), particularly from non-EU entities, are closely scrutinized to ensure they do not undermine national interests.
Which sectors fall under the Golden Power regime?
The regime applies to a broad and growing list of sectors. If you’re planning an investment in any of the following industries, you may be subject to notification requirements:
- Defense and aerospace
- Energy (gas, electricity, renewables)
- Telecommunications and 5G networks
- Transport and critical logistics
- Financial and banking infrastructure
- Public health and biotech (including pandemic tech)
- Artificial Intelligence (AI), robotics, cybertech
- Semiconductors and nanotechnologies
- Cloud services and big data
- Food security and dual-use technologies
Even acquiring a minority stake may trigger the need to notify the government, depending on the company’s relevance in a strategic field.
When is notification required for foreign investments?
Foreign investors are legally required to notify Italian authorities before closing deals that may fall under the Golden Power rules. This applies especially to non-EU investors, but in some cases EU-based firms are also included.
Triggers for mandatory notification include gaining direct or indirect control over a strategic company, acquiring voting rights or influence over management decisions, or obtaining access to sensitive data or technologies.
Failure to notify can result in the transaction being nullified, fines up to double the investment value, and long-term reputational damage in Italy’s investment ecosystem.
How to navigate the Golden Power: best practices
To minimize risks and ensure a smooth process, foreign investors should take proactive steps early in the deal timeline.
Key recommendations include conducting legal due diligence to assess exposure to Golden Power rules, engaging specialized legal counsel with experience in FDI screening, preparing and submitting a compliant filing if required, and planning for regulatory timing, as reviews typically last 45 days and can be extended if needed.
Here is a quick overview for reference:
| Step | Action required |
|---|---|
| Initial Screening | Identify if sector falls under strategic scope |
| Legal Review | Assess triggers and implications |
| Filing Preparation | Draft and submit notification to the authorities |
| Government Review | Wait for clearance or conditional approval (up to 45 days) |
| Proceed with Transaction | Only after clearance is granted |
Is Italy still open to foreign investment?
Absolutely—Italy continues to promote and attract foreign capital, especially in innovation, green energy, and infrastructure. However, like many EU countries, it has tightened controls to protect national interest in the face of global uncertainty.
The Golden Power regime is now aligned with broader EU FDI screening mechanisms, like those in France and Germany. Investors should consider it not as a barrier but as a necessary compliance step.
Looking to invest in Italy? Start with the right advice
If you’re evaluating an investment in Italy or considering a joint venture, don’t let regulatory complexity become a dealbreaker.
Work with legal advisors who understand the nuances of the Golden Power framework. Strategic preparation can turn potential risks into manageable checkpoints.