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Italy Weighs Bigger Tax Hit on Banks and Insurers to Plug €1 Billion Budget Gap

Coalition leaders seek certifiable finance‑sector revenue to fund late fixes under rigid 2026 balance targets.

Overview

  • Government leaders sealed political deals on short‑term rentals (21% on the first unit, 26% on the second, business status from the third), a broader first‑home ISEE exemption, dividend rules and funds for law enforcement.
  • About €1 billion in coverage is still required; after meetings with ABI, ANIA and Confindustria, the executive floated a plan worth roughly that amount, centered on a 2.5‑point IRAP rise on banks and insurers expected to raise around €600 million.
  • Further resources would come from higher levies tied to motor insurance and potential recovery of past underpayments, drawing protests from lenders who recall an earlier triennial contribution agreement.
  • The ECB said it was not consulted on a Senate‑admitted amendment asserting state ownership of Bankitalia’s gold reserves, and legal‑EU constraints render those assets unusable for budget coverage as the measure is reportedly headed for withdrawal.
  • The Senate Budget Committee ruled 105 signaled amendments inadmissible, the State Accounting Office is vetting costs and covers, and the calendar foresees compressed mid‑December committee and floor votes.