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What is the European Central Bank's stance on Italy's proposed bank windfall tax?
The European Central Bank (ECB) is preparing to release its opinion on Italy's proposed bank windfall tax after the Italian government officially notified the ECB about its plan. Initially, Italy's plan to impose a 40% tax on banks' net interest income resulted in a €10 billion loss in the value of Italian banking shares. However, the Italian government has since revised the proposal, indicating that the tax will now be limited to 0.1% of banks' total assets. While the ECB has previously criticized similar bank windfall taxes introduced in other eurozone countries like Spain and Lithuania, its objections have often been disregarded.
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