Italy to soften sanctions in bid for smoother relations with markets

Core Viewpoint - Italy is planning to adopt a less punitive approach to sanctions against financial companies to improve its capital markets and enhance the attractiveness of the Milan bourse [1] Regulatory Changes - A new decree will allow firms to negotiate commitments with authorities as an alternative to sanctions and will not impose sanctions for minor infringements [1] - Companies will have the option to reach agreements with authorities regarding the amount of sanctions, aimed at expediting regulatory processes [1] - Penalties will only apply for significant infringements exceeding 10,000 euros ($11,802) [1] Market Context - The Milan bourse's market-cap-to-GDP ratio was 48% at the end of 2025, one of the lowest among advanced economies [1] - The government is considering changes to legislation that holds leading officials from Consob and the central bank liable for damages in cases of serious misconduct, although these changes are not expected in the upcoming decree [1]