By Giuseppe Fonte
ROME (Reuters) – Italy is working on imposing a “solidarity” levy on its banks to fund relief measures for families hit by the cost of living crisis, a source familiar with the matter told Reuters.
The levy is expected to be part of wider package of measures to be discussed by Italy’s cabinet on May 1 — International Workers’ Day — the source added, without giving more details.
Economy Minister Giancarlo Giorgetti said on Thursday the government “cannot and will not ignore” the fact that banks saw their revenues increase in recent months due to higher interest rates set by the European Central Bank (ECB) to curb inflation, but have not adjusted rates on deposits in line with the rises.
The average interest rate on bank loans stood at 3.81% in March, the highest since June 2014, the country’s banking association ABI said last week. The rate on new loans to companies averaged 3.9%, the highest level since January 2012.
Banks are beginning to reward depositors more generously provided they have a guaranteed duration, ABI said.
In February, the most recent data available, the average interest rate paid on term deposits in Italy was 2.5%, compared with 0.57% in the same month of 2022.
Prime Minister Giorgia Meloni’s administration plans to approve tax cuts worth at least 3.4 billion euros ($3.7 billion) to boost jobs and support families’ purchasing power.
Meloni has summoned unions to a meeting on April 30 to detail the package, a government statement said.
Italy is seeking measures to fund its relief packages, as it gradually phases out the expansionary policy adopted since 2020 to soften the impact of the COVID-19 pandemic and an energy crisis exacerbated by Russia’s invasion of Ukraine.
New European Union budget rules also increase pressure on Rome to maintain a cautious approach to state finances.
Meloni made clear in recent months she was ready to introduce a separate levy on banks and payment firms, which would be imposed on the net proceeds from electronic transactions worth up to 30 euros.
($1 = 0.9091 euros)
(Reporting by Giuseppe Fonte, Editing by Giselda Vagnoni, Mark Potter and Alexander Smith)
