Italy PM looking to shore up strategic supply chains
New fund can invest in Italian headquartered, listed firms
Government eyes Gulf SWFs to support the initiative

ROME, June 1 Reuters Italy39;s rightwing government can use a new strategic fund to buy stakes in listed companies outside of the financial sector, according to a draft bill seen by Reuters, signalling a more activist industrial policy.

Dubbed the strategic fund for Made in Italy, the scheme would support companies operating in key supply chains, while also aiming to boost procurement of critical raw materials.

Industry Minister Adolfo Urso will present the fund to U.S. investors on Thursday as part of a trip to Washington this week, his office said in a statement.

According to the draft, the fund can invest directly or indirectly in the capital of listed firms which have their registered office in Italy and do not operate in the banking, financial or insurance sector.

The bill is yet to be made official and could still be subject to change.

Rome39;s government deems the automotive industry and its supply chain strategic.

However, the stipulation that investments target companies headquartered in Italy seems to exclude Stellantis, the owner of the Fiat brand and leading auto group in Italy, which has its legal base in the Netherlands.

The fund will have an initial endowment of 700 million euros 770 million in 2023 and an additional 300 million next year in state cash.

Rome also intends to raise at…