Overview
- The government is evaluating a further delay of converting deferred tax assets into immediate tax credits, with reports pointing to a potential extension into 2027.
- The banking association ABI reaffirmed that its solidarity commitment covers only 2025–26 and authorized its director general to engage with the government.
- Markets turned lower on the prospect of new curbs, with bank shares dragging Milan’s index to a 1.29% decline.
- The measure is being weighed to create roughly €1.5 billion of fiscal space for the next budget, while the ruling coalition shows divisions over bank-focused measures.
- Analysts and executives warn the change would cut expected earnings, with Monte dei Paschi di Siena seen facing about €300 million less profit per year and potential knock-on effects for its Mediobanca strategy.