Re-politicising merger policy: regulating foreign takeovers in Britain and Italy

The literature on de-politicisation has emphasized the declining role of national politicians in policymaking, particularly in the realm of economic governance. Competition policy - including with regard to cross-border mergers and acquisitions (CBMAs) - is often cited as a prime example of de-politicisation, due to the delegation of decision-making powers to independent authorities. However, recent global developments, including within Europe, suggest a reversal towards 'institutional re-politicisation', whereby elected politicians have reasserted authority over CBMAs. This article examines this shift through a comparative study of the United Kingdom and Italy, employing process-tracing to analyse key episodes. It investigates which coalitions have driven institutional re-politicisation and the arguments used to legitimise it. The findings show that re-politicisation was initiated by a diverse coalition of right-wing and centre-left politicians, trade unions, and producer associations, who invoked shared concerns about national identity, heritage, and cultural significance. The shift began prior to widely cited factors such as rising concerns over China or the Covid-19 pandemic, and the coalition has continued to widen re-politicisation in recent years. Overall, the cases show how a broad coalition sharing identity-based claims can re-politicise policymaking, even within the traditionally de-politicised domains of competition policy and economic governance.