Italy targets banks and insurers for €3.5 billion budget boost

Italy's far-right government has approved a budget for 2025 amounting to approximately 30 billion euros, with plans to raise around 3.5 billion euros from a levy on banks and insurance companies. This decision aims to enhance public services, particularly the healthcare system, and support vulnerable citizens. Prime Minister Giorgia Meloni emphasized that there would be no new taxes for citizens, while Economy Minister Giancarlo Giorgetti described the levy as a necessary sacrifice. The budget, which still requires parliamentary approval, reflects the government's commitment to balancing deficit reduction with electoral promises. The new financial measures are expected to include adjustments to tax deductions for banks and increased taxes on stock options for bankers. This approach follows a previous failed attempt to impose a windfall tax on banks, which led to significant market reactions. The government is also implementing spending reviews across ministries to tighten budgets and ensure fiscal responsibility. The approved budget will widen Italy's deficit to 3.3% of GDP, up from an estimated 2.9%, as the country faces scrutiny from the EU regarding its fiscal management and high debt levels. The government aims to rebuild fiscal credibility while addressing the needs of its citizens amidst economic challenges.