ROME (Reuters) -Italy’s domestic banks should contribute some 5 billion euros ($5.85 billion) to the upcoming 2026 budget, the ruling coalition League party said in a statement.
The proposal was based on windfall tax measures previously implemented in various European countries, said the League, which is headed by Deputy Prime Minister Matteo Salvini and includes Economy Minister Giancarlo Giorgetti amongst its ranks.
“The objective is to intervene on the excess profits of the major credit institutions,” the League said.
Giorgetti said last week that the Italian banking sector had made “stratospheric profits” over the last five years and must make a contribution to state finances.
Italy attempted to impose a 40% windfall tax on banks in 2023, but the measure sparked a major selloff in Italian banking stocks, forcing the government to radically modify the plan.
The new League proposal might face resistance within the cabinet, with allies in the Forza Italia party already making clear they oppose windfall taxes that target the banking sector.
($1 = 0.8546 euros)
(Reporting by Giuseppe Fonte, Editing by Crispian Balmer)
