Italy’s League Proposes €3 Billion Bank Levy for 2027 State Budget
Overview of the Proposed Bank Levy and Political Reactions
Details of the League’s Proposal
ROME, Sept 8 (Reuters) - Italian banks should contribute up to €3 billion euros ($3.49 billion) to help the government fund tax cuts and spending hikes in next year's budget, the co-ruling League party said in a statement on Tuesday.
A 5% levy (on profits) could generate between €2 and €3 billion in funds to be allocated to supporting families and businesses and to strengthening security measures, the right-wing party said.
Political Opposition and Coalition Dynamics
Forza Italia’s Stance on the Bank Levy
The proposal, however, is expected to face resistance from one of the League's coalition allies, the more centrist Forza Italia party.
Forza Italia has consistently opposed the League's calls for a tax on what it calls banks' "extra profits", triggering tensions in Prime Minister Giorgia Meloni's ruling alliance.
Alternative Approaches Suggested by Forza Italia
Foreign Minister Antonio Tajani, the leader of Forza Italia, said this month the terms of any contribution should be agreed with the affected companies and take the form of advance tax payments.
Context of the Budget and Additional Measures
Upcoming Budget Conference
The League issued the statement on the sidelines of a conference on Tuesday on the priorities of the upcoming budget, to be presented next month. The conference will be attended by Economy Minister Giancarlo Giorgetti, a leading party member.
Existing and Proposed Fiscal Measures
The €2-3 billion proposed by the League would come on top of some €12 billion the government already aims to garner from Italy's banks and insurers through 2028, thanks to a package of measures contained in the 2026 budget.
Higher Tax Band for IRAP Corporate Tax
These include a higher tax band for the IRAP corporate tax.
Significance of the 2027 Budget
Next year's budget will be the last one under Giorgia Meloni's government before national elections expected in 2027.
Additional Information
($1 = 0.8603 euros)
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
