Government intervention in the economy

The paper deals with the increased intervention of States in the economy in a historical phase of de-globalisation and changing geopolitical balances. Tensions are arising in the relations between the European Union and the United States as a consequence of the approval of the Inflation Reduction Act in 2022, that encourages productive investments located in the United States, thereby altering competition. The paper dwells on the Italian “golden power” regulation that introduces public control that significantly affects freedom of enterprise. The paper ends with the hope that the increased intervention of the State will not frustrate the achievements of the regulatory State, established since the 1980s in Western countries.

The paper suggests the rise of a modern principle of residuality, which exceeds the balance between regulation and competition. This principle calls for the justification of regulation in terms of necessity. Problem drivers should be also taken into consideration, as well as the regulatory content. The problem drivers appear to be enriched compared to the traditional ones, whilst also being disentangled from problems that have already materialized so as to embrace a prospective and anticipatory approach.

The contribution analyses, in the context of the relationship between State and market, the so-called "golden power". Through an in-depth analysis both historical and of the regulatory framework, the author identifies its origins, its procedural, organizational and control modalities, as well as the prerequisites for its compatibility with the European legal system.