EDF could soon face new difficulties over its interests in Italy even as French and Italian political leaders gather in Nice on Friday to set the seal on a hard-won energy accord to boost co-operation between the two countries.

The French power group is facing tough negotiations in January with AEM, the Milan utility with which it controls Edison, Italy’s second biggest generator. A controlling pact between the two expires next year and both sides have until March to push for changes in control or structure.