Italy mulls symbolic contribution from banks

Italy is contemplating a symbolic contribution from banks based on their earnings over the past two years, according to a report by Corriere della Sera.

Prime Minister Giorgia Meloni’s government is exploring a one-time payment of 1–2 per cent from lenders’ profits.

This “solidarity contribution” would be negotiated with the sector, differing from the controversial 40 per cent windfall tax proposed in 2023, which led to a financial sector selloff before being significantly diluted.

Deputy Prime Minister Antonio Tajani emphasised that a negotiated contribution would avoid harming popular and cooperative banks that provide essential loans to citizens. The proposed payment could also extend to insurers and energy companies.

Finance Minister Giancarlo Giorgetti is working on a fiscal package for 2025, aiming to raise about 25 billion euros ($27.9 billion), though only half of this amount is currently secured.

Preliminary discussions have taken place between the prime minister’s team and the finance ministry to explore additional tax contributions from lenders and insurers, whose profits have surged due to high interest rates in recent years.

Attribution: Bloomberg

Subediting: M. S. Salama