Paul J. Davies, Columnist

Italy's Defense of Bank Jobs Is an EU-Wide Obstacle

Mario Draghi’s plan to increase competitiveness in the bloc risks foundering on government reluctance to allow industry consolidation.

January 14, 2025 at 5:00 AM UTC

By Paul J. Davies

Paul J. Davies is a Bloomberg Opinion columnist covering banking and finance. Previously, he was a reporter for the Wall Street Journal and the Financial Times.

Mario Draghi’s plan to increase European Union competitiveness risks foundering on the reluctance of the bloc’s leaders to allow industry consolidation. — Mario Draghi’s plan to increase European Union competitiveness risks foundering on the reluctance of the bloc’s leaders to allow industry consolidation.
Photographer: Nicolas Tucat/AFP/Getty Images

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Italy looks more worried about averting a few job cuts at home than amplifying its economic strength in the wider world. It’s not alone among European Union members — and that’s a big problem for the bloc’s future competitiveness.

Prime Minister Giorgia Meloni plans to use special rules to protect branches and jobs in UniCredit SpA’s pursuit of a deal for Banco BPM SpA, Bloomberg News reported Saturday. Italy’s “Golden Power” was initially designed to address foreign investment in strategic industries, but its reach has been extended since 2012; in banking, it can be used to veto or impose conditions on any deal, even purely domestic ones.