(Bloomberg) — Prime Minister Giorgia Meloni said banks will once again have to contribute to Italy’s budget.
“I think we can ask the banks for help, like last year,” she told public broadcaster Rai1 when asked about taxing lenders’ excess profits. “I’m confident that a solution can be found this year too.”
While the prime minister didn’t provide any details, Italy has in the past resorted to freezing the so-called deferred tax assets, which are credits stemming from previous losses that banks can use in future years to lower their tax bills.
Meloni’s governing coalition is looking for ways to bring down Italy’s public debt and keep investors onside. Deputy Prime Minister Matteo Salvini of the far-right League has insisted that banks must help to strengthen the government’s fiscal position and Finance Minister Giancarlo Giorgetti is trying to come up with a policy that fulfills his party leader’s pledge without hitting lenders too hard.
The government has been discussing other options to raise cash via measures on companies including taxing corporate stock buybacks, which have also been divisive for the coalition.
The issue of bank taxes has caused trouble for Meloni in the past. In 2023, she was forced into a damaging U-turn after a surprise levy on lenders sent markets into a tailspin.
Speaking on Rai1’s Porta a Porta program Tuesday night, the prime minister insisted that the financial sector wouldn’t suffer any harm from a further contribution.
“I have no intention of punishing the banking system, which is an asset to the nation,” she said.
Italy’s cabinet approved the draft budget last week, with a more detailed proposal due to be sent to the European Union and discussed in parliament later this month.
More stories like this are available on bloomberg.com
About the Author
