The European Commission has closed infringement proceedings against Italy concerning prudential supervision of the acquisition of stakes in Italian banks by other EU banks. The decision to close the case follows Italy's amendments to its regulatory framework, in response to the Commission's initiation of the first phase of the infringement proceedings. The Commission was initially concerned that Italy’s regulatory framework would discourage investment from other Member States due to a potential lack of procedural transparency. Obstacles to investment such as these would violate EC Treaty rules on the free movement of capital and the right of establishment.