Meloni: Italy won't exercise influence over Paschi governance

Meloni: Italy won't exercise influence over Paschi governance

Italy’s Meloni Denies Government Influence Over Monte dei Paschi Governance Amid Ongoing Scrutiny

Prime Minister Giorgia Meloni has asserted that the Italian government will not exert influence over the governance of Monte dei Paschi di Siena (MPS) following its controversial €17 billion takeover of Mediobanca, despite mounting allegations of political interference in the deal. Speaking at a New Year’s press conference, Meloni stated, “The government does not have the authority or the means to dictate governance decisions at MPS,” emphasizing that its remaining 4.9% stake in the bank grants it no significant control.

The merger, finalized in late 2025, has drawn sharp criticism from opposition lawmakers and financial regulators, who accuse the government of orchestrating a “rigged” process to favor allies. Prosecutors are investigating whether MPS CEO Luigi Lovaglio and major shareholders—including construction tycoon Francesco Gaetano Caltagirone and EssilorLuxottica CEO Francesco Milleri— coordinated secretly to manipulate the takeover, while keeping regulators and investors in the dark. The Italian government has denied any wrongdoing, with Meloni dismissing the probe as unfounded: “Even the prosecutors have said there is nothing illegal about the government’s actions.”

The European Commission’s delayed response to Mediobanca’s complaints about conflicts of interest has further fueled tensions. Despite months of informal investigations, the EU executive has yet to intervene decisively, allowing the merger to proceed under perceived government backing. Opposition leaders, including Democratic Party head Elly Schlein, have demanded Meloni and Finance Minister Giancarlo Giorgetti testify in parliament over the affair.

Meanwhile, Meloni’s government remains focused on broader political reforms, with her coalition nearing agreement on changes to Italy’s electoral law to strengthen its parliamentary majority ahead of the 2027 elections. These adjustments, which would allocate additional seats to the winning coalition, underscore the government’s strategic emphasis on maintaining control amid domestic and EU-level challenges.

As the MPS saga unfolds, Meloni’s insistence on non-interference contrasts with persistent skepticism from investors and opposition groups, who view the merger as emblematic of a growing trend of state influence in Italy’s financial sector. The outcome of the ongoing probe and the EU’s eventual stance on state aid rules will likely shape the long-term implications for Italy’s banking landscape.