On March 21st, 2022, the Italian Government adopted Law Decree No. 21/2022 introducing urgent measures to react to the economic and humanitarian effects of the Ukrainian crisis ("Emergency Measures Decree"), which also amends the Government’s so-called "golden powers" of intervention in foreign direct investments involving companies operating in sectors deemed of strategic importance for the national interest (the “Strategic Sectors”). The golden powers were introduced by Law Decree No. 21 of March 15th, 2012 and subsequently supplemented pursuant to EU REG 452/2019 and Law Decree 105/2019 and Law Decree 23/2020.
The latest in a series of extensions of the Government’s takeover screening powers, the Emergency Measures Decree, which entered into force on March 22nd, 2022 has as its principal aim the strengthening of protections regarding national security in the Strategic Sectors, with particular reference to transactions involving 5G broadband electronic communications services and cloud technology (“5G Technology Transactions”).
The most significant changes enacted by the Emergency Measures Decree involve:
The Emergency Measures Decree, although already in force, will lapse automatically unless converted into law by May 20th, 2022. Further action from the Italian Parliament is awaited as amendments and refinements to the existing text may be introduced during Parliamentary debate on such conversion.
Please contact the authors, or your usual contact in Hogan Lovells, if you would like any further information.
Authored by Leah Dunlop, Antonio Di Pasquale, Elisabetta Randazzo, and Anastasia Pallagrosi.
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