Italy's Draft Budgetary Plan for 2025

ROME (Reuters) – Italy plans to raise roughly €4 billion ($4.4 billion) in 2025 from changes in tax rules for banks, insurance products, and business licenses for gaming, according to Rome's draft budgetary plan (DBP) released on Wednesday.

The document, sent to the European Commission for approval, estimates higher revenues amounting to 0.168% of GDP as a contribution to consolidating public finances.

Prime Minister Giorgia Meloni stated that the new money-raising scheme was developed after a "very constructive dialogue" with financial sector stakeholders. "We don't want to give the signal that banks are enemies, not at all," she commented to reporters in Brussels.

The stock prices of Italy's main banks and insurers, such as Intesa Sanpaolo, UniCredit, Monte dei Paschi, and Generali, barely changed on Wednesday, indicating no major impact from the measure.

Earlier, Economy Minister Giancarlo Giorgetti said that banks and insurers would contribute "more than €3.5 billion" to state finances next year and that the situation had been internalized by the markets, resulting in a balanced budget for fishermen and workers, albeit less so for banks.

Deputy Minister Maurizio Leo mentioned that the budget would freeze deductions related to banks' tax credits for the next two years, temporarily increasing taxation on profits. The Treasury expects to collect €1 billion from insurers by modifying the payment terms of stamp duties for certain insurance policies.

Additionally, Rome has adjusted the taxation of stock options for managers, suggesting that deductions will be deferred until the shares are actually allocated. The DBP indicates that revenues from banks, insurance products, and gaming will decrease by 0.073% of GDP in 2026 and 0.096% the following year.

Last year, Italy surprised markets by imposing a 40% tax on banks' windfall profits, but later limited the tax's scope and allowed lenders an opt-out clause, resulting in zero revenue for the state.

($1 = 0.9190 euros)