The Meloni government’s surprise announcement yesterday sparked a black day in the Italian stock market, and the executive announced today that it will limit extraordinary interest to 0.1% of assets, “to safeguard the stability of banking institutions” .
The government of Italy announced on Monday that it will introduce a “social equality” measure is taxed at 40% the extraordinary benefits of the bank, limited to the years 2022 and 2023, which will not exceed 25% of net assets and whose collection will be used entirely to “support mortgage purchases and tax cuts”.
The rule will be activated if the interest margin recorded in 2022 is “at least 5% higher than the value of fiscal year 2021,” a percentage that will increase to 10% if 2023 is compared to the previous year, the Executive said.
The announcement, in line with decisions such as those made by the Spanish government, caused a collapse in the Bag Milan, which lost 2.12% and 27.71 billion euros, of which a third, 8.96 billion, corresponded to the banking sector, according to calculations of the economic newspaper il Sole 24 Ore.
It took the government led by far-right Georgia Meloni just over 24 hours set a maximum asset limit to the new tax. “The measure, in order to safeguard the stability of banking institutions, provides for a maximum contribution limit that cannot exceed 0.1% of total assets,” said the Ministry of Economic Affairs last night, which stressed that the new rate ” follows the track of existing regulations in Europe on extraordinary bank margins”.
The new tax, which was announced by surprise on Monday after the Council of Ministers, could mean around 2.5 billion euros in the first half of 2023, according to the six largest Italian banks. il Sole 24 Ore.
The Italian Autonomous Banking Federation (FABI) limits itself to pointing this out assesses the impact in the sector and in individual banking groups” and that its general secretary, Lando Maria Sileoni, “will announce the position of the organization as soon as everything is clearer, starting with the content of the decree”.
According to Italian media, fears are mainly for the smallest banks, for which a 40% tax on part of the interest margins could be disastrous, while the impact will be less for the five largest entities (Intesa Sanpaolo, Unicredit, Banco Bpm, Mps , Bper), which posted a profit of more than 10.5 billion euros in the first six months of this year, more than double that of 2022.
Source: EITB
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