Italy’s banks registered big profits in the first half of the year, with revenues boosted as a result of the European Central Bank’s interest-rate hikes.
Among other things, this has caused payments on variable-rate mortgages to soar.
The tax will be paid in 2024 on the surplus profits of 2023.
Deputy Prime Minister and Transport Minister Matteo Salvini said Monday that the money raised by the windfall tax would be used to help households and businesses cope with higher interest rates.
The slump in bank stocks saw the Milan bourse’s FTSE Mib index drop over 2 per cent, with around €27.7 billion in capitalisation going up in smoke, including around €8.96 billion in bank stocks, after the markets were taken by surprise by the government’s move.
Bper Banca shed 10.9 per cent, MPS 10.8 per cent, Finecobank 9.9 per cent, Banco Bpm 9 per cent, Intesa Sanpaolo 8.67 per cent, and Unicredit 5.9 per cent.
Italy’s banks have not released a statement about the windfall tax, amid reports of irritation within the industry, especially because it came out of the blue.
According to initial estimates, it should generate between €2.5 and €2.8 billion.
Spain has already introduced a similar tax.
It has generated €637 million so far, with the aim of taking that figure up to €3 billion over two years.
ANSA
