Italy's Council of Ministers on Wednesday approved the Made in Italy bill, which created the country's first sovereign wealth fund.
Fondo Strategico Nazionale del Made in Italy has €1 billion ($1.1 billion) in assets and will invest with an aim to stimulate the growth and consolidation of Italy's strategic supply chains, according to the Ministry for Business and Made in Italy website.
The country wants to relaunch its strategic supply chains to procure critical raw materials in a way that will speed up energy transition and the development of a circular economy in Italy.
Some €10 million is earmarked to help entrepreneurs, particularly female entrepreneurs.
The sovereign wealth fund is overseen by the Ministry of the Economy and Finance, with initial assets of €700 million for 2023. An additional €300 million will be provided for 2024, according to the text of the bill provided by a spokesman.
The fund can invest in shares of companies on regulated markets directly or through other investment funds, the bill said. Its portfolio companies will not operate in financial services sectors.
Italy's Minister of Economy and Finance jointly with the Ministry of Enterprises and Made in Italy will manage the returns and dividends the fund derives from its investments.
