ItItalian banks are experiencing significant losses following the government's decision to introduce a 40% windfall tax on banks 📉
Italy has approved a 40% tax on banks' additional profits for the year 2023, aimed at supporting individuals with first mortgages and reducing taxes in other sectors. This decision, announced by Deputy Prime Minister Matteo Salvini, is expected to generate over 2 billion euros (2.2 billion dollars) in additional budget revenue for the government. The unexpected tax implementation could be seen as a countermeasure to higher interest rates in the eurozone. The Italian government has repeatedly indicated that the interest rates, raised by the ECB, are too high and will have inevitable consequences.
Following the announcement, shares of Italian banks plummeted, with ITA40 futures contracts dropping by 2.5%, and UniCredit SpA shares falling by 6.5%. The new regulations also empower the government to regulate foreign technology transfers in sectors like artificial intelligence and cybersecurity.
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The Italian government's decision has caused major banks' stock prices to fall well below yesterday's closing levels. Source: xStation 5
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