The discussion of the text of the Financial Maneuver in the Council of Ministers could arrive even later than already expected. Initially, the law was supposed to be examined on Tuesday 14th, but during that meeting the Minister of Economy Giancarlo Giorgetti limited himself to presenting the budget planning document. The next meeting is scheduled for Friday 17th, but it is not excluded that it could be postponed to Monday 20th.
The main problem is the question of the banks’ contribution. There are essentially three positions: the official one of the Government, which aims to obtain 4.5 billion euros from an agreement with the credit institutions, that of the banks, which want to avoid any tax, and the mediation attempted by Giorgetti, who would like to use the 6.5 billion euros set aside by the institutions.
The maneuver is late
It seems increasingly likely that the maneuver will arrive late in the Council of Ministers. The discussion of the text was scheduled first for Tuesday 14th, then for Friday 17th upon Minister Giorgetti’s return from the International Monetary Fund meeting in Washington. Even this date, however, according to what was reported by the news agency Handleis less and less certain.
Various fronts are opening up within the Government, including on rules that seemed to be defined. Forza Italia leader Antonio Tajani spoke of tax advantages “for all”, questioning the Irpef cut to the incomes of only the middle class. FI and Fratelli d’Italia are trying to limit as much as possible the scrapping of files wanted by the League and there doesn’t seem to be full agreement even on the sterilization of the increase in the retirement age.
The main problem is the coverage. In particular, in fact the Government does not yet know exactly the amount of funds it will have available for the Maneuver. The reason is that one of the most important contributions, that of the banks, has not yet found its definitive version.
The question of the banks’ contribution
In fact, for the second consecutive year, the Government has asked banks and insurance companies to contribute to the state budget on a voluntary basis. This idea was born with the Budget for 2025, at the end of a period in which, thanks to very high interest rates, banks had obtained higher profits than expected (extra profits).
The Government is seeking an agreement with banks and insurance companies for this contribution and, in the negotiation, is using the tax on extra profits as leverage. The goal is to obtain 4.5 billion euros, a quarter of the size of the maneuver, from this agreement. The banks, however, do not agree
The three ways to contribute
For the banks’ contribution to the maneuver, three positions are being developed. The Government, as mentioned, wants a “voluntary” agreement with the banks, which will bring 4.5 billion euros into state coffers. If no agreement is reached, he threatens a tax on extra profits which would cost the banks around 1.2 billion. This position is supported by almost all the majority parties.
However, Abi, the sector association of Italian banks, knows that from a technical point of view a tax on extra profits is very complex to develop. In fact, there is no definition of “extra profit”, given that there is no basic profit for each company from which to calculate the extra. The credit institutions are therefore proposing a scheme similar to that of 2024, a review of DTAs (deferred tax assets), without any new taxes or voluntary contributions. The party closest to the banks’ position is Forza Italia.
To reconcile the two parties, Economy Minister Giorgetti proposed a compromise. No contribution, no tax, but a formula to “free up” the 6.5 billion euros that the banks have put in reserve in 2023 and inject them into the economy. This would allow the Government to spend less on growth and concentrate its resources on other things. However, banks also see this option as a tax. The measure would increase the tax on the movement of this capital from 40% to 26%, while still giving the State 1.7 billion euros.
