The drafting of Italy's new national budget has hit a rocky start, marked by a tense standoff between the government and the financial sector. Carlo Messina, CEO of Intesa Sanpaolo, publicly challenged expectations that banks should shoulder the burden alone, pushing back against a proposed multi-year financial extraction totaling roughly 5 billion euros next year and another 5.5 billion across the following two years. The banking sector argues that any extraordinary contribution should be shared more broadly across large corporations boasting net profits exceeding 500 million euros, potentially including state-backed entities like Cassa Depositi e Prestiti.
Meanwhile, Deputy Prime Minister Antonio Tajani sought to reassure financial markets, ruling out a punitive windfall tax or a hostile stance toward banking and insurance institutions, while confirming that the broader financial world must still contribute to the fiscal package. To balance the ledger, the executive branch is weighing alternative financing avenues, including an adaptation of the "energy release" mechanism - offering capped energy prices to large corporations in exchange for renewable energy investments - to help shield small and medium-sized businesses from high utility bills.