The European Central Bank is angry with the Italian government

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The European Central Bank is angry with the Italian government
The European Central Bank is angry with the Italian government

Reports from Reuters indicate that the European Central Bank (ECB) is planning to send a letter to Italy with objections to a sudden tax on bank profits that has been introduced by Italy's government, according to ANSA. A letter from the European Central Bank to the Italian government has been published in Italian newspapers today, in which it expresses its criticism of the government's decision last week to introduce the tax without informing the Italian Central Bank, and neither the ECB, as required by European Union rules.

It is clear from the ECB's reaction that this tax risk could weaken the Italian economy and its banks. A few days ago, the conservative government of Italy announced that it would impose a one-time additional tax of 40 percent on large bank profits as a way of consolidating its political base, resulting in an enormous sell-off in bank shares, not just in the large Italian banks, but in the large banks across the eurozone as well.


The government gave the explanation

Approximately 24 hours later, the government partially retracted its decision, explaining that banks would have to pay 0.1 percent of their assets' value as tax, which will be less than the maximum amount it had originally proposed.

As a result of the rise in interest rates, banks have been forced to pay a one-time tax on the large profits they have made. In an article published in Reuters on the day after the measure was announced, it was revealed that the Italian Ministry of Finance will be collecting a little less than 3 billion euros through this tax as a result of this measure.

It was, however, determined that they would be able to collect an amount of money that would be significantly greater than what they expected. The Italians are obviously in huge problems, and it is necessary that they find the right solution.

The crisis reigns in the whole of Europe, and even Italy was not spared from it. We will see what the final judgment will be.

European Italian

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