Italy is seeking 1.2 billion euros ($1.3 billion) from fintech group ION following a probe by prosecutors in the northern city of Bologna into alleged tax evasion over the 2013-2023 period, Reuters reported. The investigation adds to a string of tax evasion cases in Italy targeting U.S. tech companies, which are also at the centre of a wider EU response to the trade war sparked by U.S. President Donald Trump's tariffs.

The Italian economy will grow by 0.5% this year, far below the government's official 1.2% estimate, the country's central bank said on Friday, cutting a 0.7% forecast it made in December and warning of the impact of U.S. trade tariffs, Reuters reported. The central bank forecast that tariffs announced by U.S. President Donald Trump on Wednesday would have a negative impact of more than half a percentage point on Italian growth in 2025-2027.

Italy's Prime Minister Giorgia Meloni and its top business lobby warned on Wednesday that looming U.S. tariffs would have a major impact on the country's exports and already struggling economy, Reuters reported. "It is clear that the introduction of new tariffs would have heavy repercussions for Italian producers", Meloni said while hosting a prize-giving ceremony for Italian cuisine in Rome. Meloni added that she did not rule out "adequate responses" to protect the exports of the euro zone's third largest economy, though she did not elaborate.

The European Central Bank has given UniCredit (CRDI.MI), opens new tab the green light to buy up to 29.9% of Commerzbank (CBKG.DE), opens new tab, the Italian bank said, adding it would likely wait until next year before deciding whether to pursue a full takeover, Reuters reported. With Germany up in arms against the potential acquisition, UniCredit's CEO Andrea Orcel, a veteran dealmaker, has thrust his bank into fast-moving Italian consolidation and put on ice his ambitions for a pan-European tie-up.

German inflation unexpectedly remained unchanged in February, highlighting the challenges for the European Central Bank in deciding how quickly and how far to cut interest rates, Bloomberg News reported. Consumer prices increased 2.8% from a year ago, the statistics office said Friday. Economists in a Bloomberg survey had expected a slight slowdown to 2.7%. The report follows earlier figures showing French inflation retreated to its lowest level in four years, while price gains in Italy surprisingly held steady.

Italian spirits group Davide Campari led by its new Chief Executive Simon Hunt, said on Thursday it needed to take some "tough decisions, such as organizational restructuring" to ensure the group's return to financial health, Reuters reported. Italian daily MF reported on Thursday that the group was working to cut its workforce by 10%, meaning around 500 people. Asked for a comment, Campari said in an emailed statement that it needed a more efficient resource allocation, as changes in top-line performance and existing infrastructure investments had impacted profitability.

Telecom Italia SpA has hired UniCredit SpA to help evaluate its options as suitors circle the former Italian phone monopoly, Bloomberg News reported. Advisers at Italy’s second-largest bank will work with Telecom Italia to review scenarios that could increase its value in an approach. Billionaire Xavier Niel and buyout firm CVC Capital Partners Plc are separately exploring deals for Telecom Italia that could pave the way for its eventual combination with the local unit of Niel’s Iliad SA, Bloomberg reported last week.