Italy debates a larger contribution from banks to fund the 2027 budget

Italy is preparing its 2027 budget, and the governing coalition is divided over whether banks should pay more toward it.

The League has proposed a 5% levy on the profits of the country’s 10 largest banks, estimating it could raise €2 billion to €3 billion.

It says the money could help families and businesses facing high energy costs, fund pensions and support security.

The banking sector says it has already agreed to measures worth about €10 billion over three years as part of the 2026 budget, and that the agreement should be kept.

It also says part of that contribution is tax revenue brought forward, rather than a permanent gain for the state.

Other coalition parties oppose a new levy or favor different approaches, and Economy Minister Giancarlo Giorgetti has instead highlighted greater competition among banks.

The budget has little room for extra spending, so new measures must be paid for through cuts or additional revenue.