Italy's Coalition League Proposes Bank Levy to Bolster Public Finances

Deputy Prime Minister Matteo Salvini announced that Italy's coalition League party plans to propose a three-year levy on the top 10 largest banks in the 2027 budget to support public finances. The proposal aims for a 5% annual contribution from banks, targeting only the largest lenders.

Italy’s coalition League party is gearing up to propose a new levy targeting the nation’s ten largest banks, aiming to boost public finances through the 2027 budget. Deputy Prime Minister Matteo Salvini shared these plans, emphasizing the intention for a three-year contribution from major banking entities.

If bank sector profits hover around €30 billion annually, Salvini suggests extracting 5% per year over this period. This move comes as Italy’s financial landscape witnesses a wave of mergers and acquisitions, with Intesa Sanpaolo and UniCredit leading the charge with substantial profits.

The tax initiative, already partially implemented in the 2026 budget, seeks to utilize the robust earnings of the largest banks without impacting smaller, local financial institutions.