Von der Leyen Delays Action Over Italian Banking Merger Dispute
The European Commission has finished analyzing Italy’s decision to block the merger between two Milanese banks, UniCredit and BPM, but Ursula von der Leyen has not yet acted.
Background of the Banking Merger
Earlier this year, Italy viewed UniCredit’s €10 billion acquisition of BPM as a national security risk. Using its "golden power" rules on foreign direct investments, Rome set conditions on April 18 that effectively prevented the merger's completion.
European Commission's Position
The assessment from the competition and financial services directorates, submitted weeks ago to von der Leyen’s Cabinet, reportedly does not favor Italy’s stance.
Political Considerations
Sources familiar with the situation say the Commission’s delay reflects broader political negotiations between Brussels and Rome.
“Von der Leyen is taking care not to annoy Giorgia Meloni because she needs the Italian premier’s support to shore up the increasingly shaky political coalition that backed her for a second term last year.”
The Commission appears cautious to avoid straining ties with Meloni’s government amid fragile political dynamics.
Summary
The stalled reaction by the European Commission reveals the delicate balance between regulatory enforcement and maintaining strategic political alliances within the EU.
Author's summary: Ursula von der Leyen delays EU action on Italy’s halted banking merger to maintain crucial political support from Prime Minister Meloni amid a fragile coalition.