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Intesa CEO says Italy bank tax plan may draw ECB pushback
Reuters reported Thursday that Intesa Sanpaolo CEO Carlo Messina told parliament Italy’s 2027 budget tax measures on banks could prompt the ECB to press lenders to cut sovereign-debt holdings.
- New headline Was: “Intesa criticises Italy for bank levies in 2027 budget, says ECB may intervene”
- Our desk filed its story
Based on reporting by Reuters
Intesa Sanpaolo Chief Executive Carlo Messina told an Italian parliamentary committee on Thursday that tax measures in Rome’s 2027 budget targeting banks could lead the European Central Bank to ask Italian lenders to reduce their holdings of government debt, Reuters reported1.
Messina said parts of the measures conflicted with Italy’s constitution and would lead to legal disputes with lenders, according to the report, and he tied limits on tax credits from earlier home-renovation incentives to how the state is handling public debt1.
Italy plans to raise 5.9 billion euros ($6.54 billion) from the financial sector for next year’s budget, rising to 12 billion euros through 2029, Reuters said, to help fund tax cuts and higher spending1.
Prime Minister Giorgia Meloni, speaking in Dublin, described the higher taxation as justified amid living costs and interest rates and said businesses that had done well in recent years should contribute, the report said1.
The Bank of Italy said the planned tax increases would add uncertainty and affect investment decisions, Reuters reported; the government has said bank profits in recent years came largely from ECB rate increases and pandemic-era state loan guarantees1.
Messina focused on a plan to spread over 10 years more than 20 billion euros in tax breaks now due in 2027, linked to 2023 home-renovation incentives, and said ECB rules would treat that as forbearance that could later bring pressure to cut government bonds, according to the report1.
The Bank of Italy also said that provision could weigh significantly on banks’ 2026 earnings, Reuters reported; unnamed people told the agency Italy expects a critical legal opinion on the budget from the ECB, and Economy Minister Giancarlo Giorgetti said he was open to changes while the budget is before parliament1.