Intesa chief says new €5bn bank levy risks breaking three-year deal

Intesa Sanpaolo chief Carlo Messina says Italy's government agreed a three-year deal with banks last year to help fund public finances.

The agreement was for about €10 billion in total, and Messina says the government had asked banks to commit for three years.

Italy's 2027 budget plan now seeks about €5 billion more from the financial sector, including banks and insurers.

The government has not yet said how that cost will be divided or what methods it will use to collect it.

Messina argues that banks already contribute through taxes, saying the state will receive €25 billion in tax on €50 billion of expected bank profits.

The dispute raises questions about whether agreements between the government and banks can be relied on, while the sector says the new request comes on top of its existing commitment.

The budget plan has been sent to Brussels, but the details of the additional contribution remain unclear.