Italy's FDI screening in 2025: Strategic vigilance meets regulatory precision

Italy’s Golden Power regime continues to evolve into one of the most assertive FDI screening frameworks in the EU. Traditionally focused on defence and energy, the regime now plays a central role in shaping transactions involving a wide range of strategic assets — particularly those tied to data, infrastructure, and emerging technologies.

In line with EU Regulation 2019/452 and amid ongoing geopolitical tensions, the Italian government has further expanded the scope of the Golden Power regime. The list of sectors now subject to potential screening includes cloud computing and data centres, artificial intelligence and algorithmic decision-making systems, advanced semiconductor design and production, submarine cable networks and critical digital infrastructure, as well as agricultural biotechnology and food security technologies. This broadened coverage reflects Italy’s strategic alignment with the European Union’s agenda on digital sovereignty and the resilience of critical supply chains.

By mid-2025, Italy had received over 835 FDI-related notifications, a 15% increase from 2024. Authorities now proactively invite filings even in borderline cases and have adopted a stricter stance on procedural compliance. Fines have been issued for late or omitted notifications, and companies are encouraged to engage in early pre-notification consultations with the Presidency of the Council of Ministers.

Several 2025 interventions have focused on digital and high-tech assets. In one case, a Sino-Italian joint venture in aerospace technology was blocked — marking the only official veto issued so far this year — due to dual-use technology sensitivities.

Telecom networks and submarine cable infrastructure also remain under close watch. The proposed sale of Sparkle, Telecom Italia’s subsea network subsidiary, is under government scrutiny, especially due to the growing relevance of subsea cables for EU data sovereignty.

2025 has also seen growing attention on governance-related risks. While formal Golden Power action was not taken in the Mediobanca–MPS–Generali triangle, the government monitored ownership shifts closely, signalling that even internal, domestic financial consolidation may raise national interest concerns — particularly when strategic insurers or banks are involved.

The 2025 trend is clear: Italy is embedding FDI screening into the DNA of deal execution, particularly in transactions involving cross-border private equity, emerging technologies and critical data infrastructure, as well as strategic domestic financial players. Companies are therefore advised to integrate FDI risk assessment into their early-stage due diligence processes and to engage legal counsel at the outset. Notably, even indirect or intra-group ownership changes may trigger review under the Golden Power regime. Early coordination with the relevant national authorities and a well-structured filing strategy can help avoid costly delays or post-closing complications.