Italy is planning to levy taxes on banks again to cope with the pressure of the fiscal deficit.

Italian Prime Minister Giorgia Meloni is seeking new ways to tax banks and insurance companies to fund the national budget and avoid repeating past failures. According to informed sources, this strategy may include negotiating with banks to have them contribute additional profits in some form. In addition, the government may also expand taxation measures to other industries such as energy. As the negotiations are still ongoing, the informants have chosen to remain anonymous, and the Ministry of Finance has not commented on this. It is understood that against the backdrop of tight public finances in Italy, Meloni urgently needs to raise funds to secure voter support. She has repeatedly stated that the financial industry should help families suffering losses due to high interest rates, from which banks benefit. However, previous bank tax measures have not been successful. In 2023, the government planned to levy a 40% tax on banks' excess profits, but this measure caused market panic, leading to a significant sell-off of bank stocks, and the tax plan was significantly weakened. Informants said that this failure has prompted some officials within the government to push for a one-time payment method, which is more likely to be accepted by banks and avoids legal hurdles caused by mandatory measures. Italian Deputy Prime Minister and leader of the Northern League, Matteo Salvini, said in an interview on Monday, "Everyone should do their part." He emphasized that banks and insurance companies should contribute to economic recovery like craftsmen and workers. In fact, Meloni's actions are not isolated. French Prime Minister Michel Barnier recently said that they are considering taxing the wealthy and big companies to fill France's massive budget deficit and avoid increasing the tax burden on the middle class. It is worth mentioning that the EU has continuously criticized Italy and France for their high budget deficits. Currently, both governments are working on plans to rationalize their financial situations.