Italy Ruins Beach Time for Bankers

Italian Prime Minister Giorgia Meloni has abruptly disturbed bankers’ summer holidays.

In a move that spooked markets, her hard-right government blindsided banks with a windfall tax in a decree passed at a late night cabinet meeting on Monday. The law provides for “40% withdrawal from banks’ multibillion-euro extra profits,” which resulted largely from European Central Bank interest rate increases. Bloomberg Intelligence estimates Italian lenders’ 2023 net income could be cut by 10% as a result. By mid-morning on Tuesday, the nine biggest losers on the nation’s benchmark stock index were banks.