Rome will reserve the right to appoint a special commissioner to take all necessary steps "for the timely and effective implementation of the investment programmes," the draft said.

Tax breaks amounting to roughly 630 million euros between 2024 and 2028 will further help to promote research and development in microelectronics.

Set to be discussed by the cabinet on Monday and therefore still subject to changes, the draft decree comes amid talks between Italian authorities and chipmakers including U.S. group Intel (INTC.O) on potential investments in the country.

Intel last year announced it aimed to build an advanced packaging and assembly chip factory in Italy as part of a wider long-term investment plan to expand capacity across Europe. However, that plan remains to be confirmed.

The government also plans to strengthen golden power regulation aimed at shielding strategic assets in sectors of artificial intelligence, semiconductor manufacturing, cyber security, aerospace, energy storage, quantum and nuclear technologies.

Golden powers can be used in these areas also in relation to corporate decisions within a group if companies located outside the European Union stand to benefit, the document said.

In a bid to boost the rollout of 5G networks, the scheme envisages raising limits on electromagnetic emissions which mobile telecoms operators complain are too low in Italy compared with other European countries.

Other measures will allow local municipalities to release additional permits to tackle a taxi shortage that has irked tourists and residents across Italian biggest cities.

Moreover, the decree includes rules limiting air fares to Italy's islands, the draft showed. Companies will be forbidden from increasing tariffs at times of high bookings if this leads to prices "200% higher" than the average fare.

($1 = 0.9074 euros)