Italy bank shares fall on govt s surprise windfall tax macaubusiness.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from macaubusiness.com Daily Mail and Mail on Sunday newspapers.
A drive to shore up its
political base and appeal to the less well off lay behind the
Italian government s decision to impose a windfall tax on banks
but its clumsy handling could do more harm than.
A drive to shore up its political base and appeal to the less well off lay behind the Italian government's decision to impose a windfall tax on banks but its clumsy handling could do more harm than good by shaking investor confidence. A market rout prompted a hasty clarification on the one-off 40% bank levy, which the government later said would be capped at 0.1% of bank assets in line with European Union recommendations. The Treasury expects to draw less than 3 billion euros ($3.3 billion) from the measure, sources have said, or roughly 3% of this year's budget deficit target.
Banks came under deep pressure Tuesday after Italy's right-wing cabinet approved a 40% windfall tax on profits lenders reap from higher interest rates.