Green light for €1 billion national fund
Italy is taking a decisive step to strengthen the supply of critical raw materials and enhance the competitiveness of its industrial sectors. The Government has presented to the Council of Ministers a decree aimed at simplifying authorisation procedures and stimulating strategic investments related to Made in Italy. An action that aligns with EU directives and implements the EU Regulation on critical raw materials, approved by the European Council last March.
The Ministry of Economy and Finance (MEF) has given the green light to the implementing decree that makes operational the National Fund for Made in Italy, endowed with one billion euros of public resources for the current biennium. The objective is ambitious: to attract private and international capital to double the fund, bringing it to a total of two billion.
What is the National Fund for Made in Italy?
Established by the Law n. 206 of 27 December 2023 and active since 11 January 2024, the fund aims to support the growth and competitiveness of Italian strategic sectors, with particular attention to high technology intensive sectors. Despite being called “sovereign fund”, it is an instrument participated by the MEF but also open to private investors, with the aim of consolidating the national production system and promoting the excellence of Made in Italy on global markets.
Objectives and areas of intervention
The National Fund for Made in Italy focuses on two main areas:
Access to critical raw materials – It will finance projects for the extraction, processing, recycling and distribution of raw materials essential to Italian industry. Initiatives will include the reactivation of disused mines, the opening of new mining sites and the creation of an industrial supply chain dedicated to imported raw materials, thus reducing dependence on foreign suppliers.
Support for strategic supply chains – Investment in technologically advanced and highly competitive sectors will be encouraged. The fund may participate directly in the capital of companies, up to 50% of the total investment in private equity operations.
According to article 12 of the decree of 20 June 2024, resources may also be invested in financial instruments issued by companies with share capital – including cooperatives and listed companies – and in real estate assets that are functional to the operation of industrial chains.
Fund management and structure
The fund will be divided into two separate operating branches, entrusted to specialised companies:
Real Asset Fund – Probably managed by Invimit (a subsidiary of the MEF), it will manage and develop Italian mineral resources. It will also be open to private and international investors to support the reactivation of mines and promote investment in the extractive sector.
Fondo Imprese – With the possible management of the Fondo Italiano d’Investimento, it will finance strategic companies through minority or majority shareholdings, promoting the growth of companies in key sectors for the national economy.
Both funds will operate in a market-oriented manner to avoid distortions of competition and promote sustainable investment.
The way to go: next steps
Despite the approval of the implementing decree, the fund is not yet operational. For its final activation, some essential steps remain to be completed:
Audit of the Court of Auditors: compliance with the regulations and impact on public accounts must be verified in order to authorize the official publication of the decree.
Definition of internal regulations: management companies will have to establish operational procedures and intervention criteria, subject to the approval of the relevant ministries.
Implementation of Decree-Law 84/2024: royalties on extractions will be determined (between 5% and 7%), companies that use strategic raw materials will be identified and a National Register of strategic value chains will be created to monitor industrial activities.
Fees for environmental audits: The Institute for Environmental Protection and Research (Ispra) will set costs for audits and controls related to the sustainability of mining activities.
Once these steps are completed, the fund will be able to start financing strategic projects for the supply of raw materials and for the relaunch of Made in Italy, contributing to the industrial sovereignty of the country and the European strategic autonomy.
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