Italian Prime Minister Giorgia Meloni stated on Monday that she takes full responsibility for the decision to impose a one-time tax on banks, which may have long-term damage to the Italian government's credibility in the financial markets. The new tax targets profits made by banks from high interest rate operations.
In her comments to Italy's Corriere della Sera, La Repubblica, and Il Giornale, Meloni said that imposing a 40% tax on banks is not a punishment. She stated in La Repubblica that she believes the decision she made is the right thing and takes full responsibility for it.
In order to consolidate its political base, the Italian conservative government announced the decision to levy a one-time tax on banks last Monday night. Twenty-four hours later, the government clarified that the tax revenue would have a cap, and during this period adjusted the tax threshold, thereby retracting the decision to some extent.
Sources told Reuters that when the measure was announced, the Italian Ministry of Finance expected the tax to generate less than 3 billion euros ($3.3 billion) in revenue. Before clarifications on the tax cap were made, initial calculations indicated that the tax might generate even more revenue.
At the press conference announcing the bank tax, Italy's Minister of Economy Giancarlo Giorgetti was not present, but Meloni said he was informed. She explained that due to the sensitivity of the issue, other members of the government were not informed or involved in advance.
The government had considered taxing the record-high profits from bank interest rates, but this appears to have been put on hold, with the government's inconsistent and confusing communication on the matter alerting international investors.
Prime Minister Meloni responded to questions about whether she would form an alliance with France's Marie Le Pen in next year's European Parliament elections, stating that it is too early to discuss these matters now.
