Italy’s proposed 40% windfall tax on banks’ profits has faced continued criticism, with analysts, policymakers, and business leaders expressing concerns about its impact on international investors and the banking sector. The tax announcement in August led to a significant market reaction, with Europe’s main bank stock index falling nearly 3%.
Critics argue that the tax could deter international investors from making long-term investments in Italy, as it introduces uncertainty about the government’s ability to intervene in profits. Carlo Calenda, national secretary of the Azione political party and Italy’s former deputy minister of economic development, called the tax “very dangerous” for international investors.
Italy’s Economy Minister Giancarlo Giorgetti acknowledged that the bank tax “can certainly be improved upon” but defended it as not unfair. Antonio Tajani, the country’s foreign minister and leader of the centre-right Forza Italia party, stressed the importance of distinguishing between large and small lenders and suggested the need for discussions with banks to refine the law.
However, Gian Maria Gros-Pietro, Chairman of Intesa Sanpaolo, one of Italy’s largest banks, criticized the tax and the government’s communication around it. He argued that the tax should be a one-off measure and that this is not the right time to reduce lending capacity.
The controversy surrounding the bank tax highlights ongoing debates about its potential impact on Italy’s banking sector and attractiveness to international investors.
